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Opening a spot position on margin
The availability of margin trading services is subject to certain limitations and eligibility criteria. Opening a spot position on margin occurs when you use an extension of margin from Kraken to make a spot purchase or sale of cryptocurrency on the Kraken exchange.
There are two types of spot positions on margin that can be opened: long and short

Example

"Long ETH"

  • If you take on an extension of margin from Kraken denominated in USD, and buy ETH for USD on the ETH/USD order book, you would be opening a “long ETH” spot position on margin. 

"Short ETH"

  • If you take on an extension of margin from Kraken denominated in ETH, and sell ETH for USD on the ETH/USD order book, you would be opening a “short ETH” spot position on margin. 
By opening a spot position on margin, you incur corresponding obligations, including the obligation to return the amount of the margin extension to Kraken through position settlement or one or more closing transactions. Your spot position on margin remains open until these obligations are satisfied.
How to open a spot position on margin on Kraken Pro
To create an order to spot trade using margin first select the Margin tab - then enter everything in the order form just as you would for a regular spot trade (the "Amount" field still determines the size of the order, the price parameters for the various order types work the same, etc.)
Screen_Shot_2022-09-19_at_11.38.07_AM.png
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How to open a spot position on margin on Kraken Classic
To create an order to spot trade using margin, you enter everything in the order form just as you would for a regular spot trade (the "Amount" field still determines the size of the order, the price parameters for the various order types work the same, etc.) — EXCEPT you must select a level of leverage for the order:
Trading_LeverageRatioETH_USD_09082021.png
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What about the different levels of leverage?

For information on how leverage works for margin transactions, click here.