The availability of margin trading services is subject to certain limitations and eligibility criteria.
Kraken maintains margin pools in 24 cryptocurrencies and four cash currencies, which allow you to trade using margin.
*CAD, CHF, EUR, GBP, JPY and USD margin allowance limits only apply to long positions. See below for further explanation.
**All KEEP markets are in Reduce Only meaning you cannot open new Margin positions. You can only reduce the size of your existing ones.
If you try to open a spot position on margin that exceeds your allowance limits, you will see a "Margin allowance exceeded" error. Additionally, if you try to open a margin position that exceeds the limit, you will see the error "Margin position size exceeded".
Margin allowance limits are a total per currency, not a total per position. So you can create a single BTC/USD long position for 15,000,000 USD, or ten BTC/USD long positions at 1,500,000 USD each.
Margin allowance limits are reset when you close a position, which automatically repays the funds to our margin pool.
Note: Where the margin pool funds are derived from depends on the trading pair and whether you are long or short.
- To go long (i.e. buy BTC), funds from the USD pool are used and thus the USD allowance limits apply.
- To go short (i.e. sell BTC), funds from the BTC pool are used and thus the BTC allowance limits apply.
For a crypto-to-crypto pair like ETH/BTC:
- To go long (i.e. buy ETH), funds from the BTC pool are used and thus the BTC allowance limits apply.
- To go short (i.e. sell ETH), funds from the ETH pool are used and thus the ETH allowance limits apply.
Note: The limits for going short are not supposed to be the same as the limits for going long. Limits are not based on the exchange rate. They are based on how much of each currency we have available in our margin pools.
If you wanted to open a short position in bitcoin against USD, EUR or ETH, the limit on the size of the position would be 310 bitcoin because when you are shorting bitcoin, you are using Kraken’s funds from the BTC margin pool.
The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.