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Kraken launches Bitcoin Cash (BCH) and Ripple (XRP) margin trading

We are pleased to announce the launch of margin trading for Bitcoin Cash (BCH) and Ripple (XRP). The addition expands our margin offering to 8 assets, including Bitcoin (XBT), Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR), and Tether (USDT).

Which currency pairs and leverage amounts are available?

Bitcoin Cash
BCH/XBT – 2x
BCH/USD – 2x, 3x
BCH/EUR – 2x, 3x

XRP/XBT – 2x, 3x
XRP/USD – 2x, 3x, 4x, 5x
XRP/EUR – 2x, 3x, 4x, 5x

What are the borrow limits?
The borrow limits depend on the verification level of your account.

Bitcoin Cash
Tier 1: 1 BCH
Tier 2: 5 BCH
Tier 3: 50 BCH
Tier 4: 500 BCH

Tier 1: 5,000 XRP
Tier 2: 25,000 XRP
Tier 3: 250,000 XRP
Tier 4: 2,500,000 XRP

What are the margin fees?
Margin open fee = 0.02%
Rollover fee = 0.02% / 4 hrs

Is margin trading available on the new trading platform?
Yes – clients can margin trade on both https://www.kraken.com and the new platform at https://trade.kraken.com. If you haven’t tried the new platform yet we highly recommend it – most clients prefer it for the improved UI, integrated charts and tools. Also, it supports mobile trading (just navigate to https://trade.kraken.com on your mobile device and select “Trading” in the bottom right to get started).

BCH and XRP are not collateral currencies
Please note that BCH and XRP are not collateral currencies. This means you cannot open margin positions against the value of your BCH or XRP balances. For this reason, you should always maintain adequate balances of other collateral currencies to maintain your margin positions. Be extremely careful when trading collateral currencies for BCH or XRP when you have margin positions open, since this will reduce your account equity and could possibly lead to the liquidation of your margin positions.

Current List of Collateral Currencies

What are the advantages of margin trading?
Margin trading allows you to leverage your account for greater profits, while also assuming greater risk. If you are unfamiliar with margin trading and how it works, you can learn more about it by visiting the two sections on margin trading in our Support Center.

Trading: Leverage and Margin
Terms and Concepts Used in Margin Trading

A word of caution
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 funds you borrowed to open the positions. This means that you may be forced to take a large 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.

Margin Call Level and Liquidation Level

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 live chat.