Advanced Tezos (XTZ) traders can seek greater profits (with greater risk) through new leverage trading options now available on Kraken and Kraken Pro.
Starting today, traders can open positions up to 3x the value of all collateral currencies (crypto and fiat) available in their accounts to place long or short bets on the direction of four available trading pairs. Tezos is the ninth asset available for margin trading on Kraken, following Bitcoin, Ethereum, Bitcoin Cash, XRP, Ethereum Classic, Augur, Monero and Tether.
With the launch, clients now have the option to pursue profits according to varying risk appetites, either by spot trading, margin trading or simply staking their XTZ. This is the first time an asset has been available for staking and margin trading on Kraken and Kraken Pro.
Which currency pairs and leverage amounts are available?
- XTZ/EUR: 3x
- XTZ/USD: 3x
- XTZ/XBT: 2x
- XTZ/ETH: 2x
Which services will XTZ margin trading be available for?
What are the margin fees?
- Margin open fee = 0.02%
- Rollover fee = 0.02% / 4 hrs
Is Tezos a collateral currency?
Tezos is a collateral currency, however, it is a bit different in that only 50% of your Tezos balance counts as collateral. For example, if you have a balance of 100 XTZ, you could only open margin positions against the value of 50 XTZ.
Of course, if you have other collateral currencies in your account balances, the value of these balances can be used to open positions. Also, please note that any staked Tezos cannot count as collateral.
What are the advantages of margin trading?
If you are unfamiliar with margin trading and how it works, you can learn more about it by visiting our Support Center.
A word of caution
Margin trading is for more advanced traders who use disciplined risk management strategies. While margin trading can lead to greater profits, it can also lead to greater losses. Also, if the losses are large enough, your margin positions can be forcibly closed in order to protect the integrity of Kraken’s margin pools. This means that you could be forced to take a loss on a trade rather than having the option to try and wait for a more favorable price. Margin Call Level and Liquidation Level are explained in our Support Center.
Make sure you take the time to fully understand how margin trading works and the risks involved before you start (see the links above for more information).
If you have any questions about margin trading, visit our Support Center where you can search our knowledge base, submit a request, or chat live.