Margin borrow limits

Essentially a loan, margin trading allows you to borrow funds in eight cryptocurrencies and two fiat currencies to open positions larger than your account balance. 

What are the margin borrow limits?

The margin borrow limits for each currency vary based on your current verification level.

  Starter Intermediate Pro
Euros 5,000 EUR 50,000 EUR 500,000 EUR
US Dollars 5,000 USD 50,000 USD 500,000 USD
Augur 1,000 REP 2,500 REP 25,000 REP
Bitcoin 2.5 XBT 25 XBT 250 XBT
Bitcoin Cash 5 BCH 50 BCH 500 BCH
Ethereum 25 ETH 250 ETH 2,500 ETH
Ether Classic 250 ETC 2,500 ETC 25,000 ETC
Monero 50 XMR 500 XMR 5,000 XMR
Ripple 25,000 XRP 250,000 XRP 2,500,000 XRP
Tether 5,000 USDT 50,000 USDT 500,000 USDT

*EUR and USD margin borrow limits only apply to long positions. See below for further explanation.

If you try to open a position with margin that exceeds your borrow limits, you will see a "Margin allowance exceeded" error.

How do margin borrow limits work?

Margin borrow limits are separate for each currency. So an Intermediate user could borrow up to 50,000 EUR and 50,000 USD at the same time (assuming there are funds available to lend).

Margin borrow limits are a total per currency, not a total per position. So an Intermediate user can create a single XBT/USD long position for 50,000 USD, or five XBT/USD long positions at 10,000 USD each.

Margin borrow limits are reset when you close a position, which automatically repays the funds lent to you.

Note: The currency you borrow depends on the trading pair and whether you are long or short.

Long vs Short

For a crypto-to-fiat pair like XBT/USD:

  • To go long (i.e. buy XBT), you need to borrow USD and thus the USD borrow limits apply.
  • To go short (i.e. sell XBT), you need to borrow XBT and thus the XBT borrow limits apply.

For a crypto-to-crypto pair like ETH/XBT:

  • To go long (i.e. buy ETH), you need to borrow XBT and thus the XBT borrow limits apply.
  • To go short (i.e. sell ETH), you need to borrow ETH and thus the ETH borrow 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 for lending.

More Examples

Your account is Intermediate and want to open a long position in bitcoin against fiat currencies. The maximum size of your position, assuming you had enough collateral to open it, would be 50,000 USD worth of bitcoin plus 50,000 euro worth of bitcoin. The number of bitcoins that it would be possible to buy in these positions would depend on the price of the current price of bitcoin. The limit would not be 25 bitcoin (the Intermediate limit for borrowing bitcoin).

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 25 bitcoin because when you're shorting bitcoin, you're borrowing bitcoin from Kraken and selling it.