A collateral currency (also called a margin currency) is a currency that can be used as “collateral” for margin trading.
At the present time, the collateral currencies on Kraken are:
- XBT (bitcoin)
- ETH (ether)
Important: if you have margin positions open, be extremely careful when you trade away or withdraw any of your collateral currencies! Trading a collateral currency for a non-collateral currency will cause your margin level to drop and you may end up getting liquidated.