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
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.
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.com
How to open a spot position on margin on Kraken Pro
What about the different levels of leverage?
For information on how leverage works for margin transactions, click here.