How settling works
Settling a position repays Kraken’s funds directly from your account balance without having to place a closing trade in the market. Upon settling, you acquire the asset that was originally received from the market at the time of the position’s opening.
Settling allows you to exit your margin position at the original opening price and with no trading fee.
Note: If you have multiple positions, they will be settled in the order they were created following the "First in First Out" (FIFO) rule.
Let's look at two examples of short and long:
- A short XBT/EUR position involves Kraken selling XBT from our XBT margin pool for EUR on the market. To settle the position, you must hold enough XBT in your balances to cover the XBT volume of the opening order. Upon settlement, you will acquire the original EUR cost (XBT volume x price).
- A long XBT/EUR position involves Kraken purchasing XBT from the market with funds from our EUR margin pool. To settle the position, you must hold enough EUR in your balances to cover the EUR cost (XBT volume x price) of the opening order. Upon settlement, you will acquire the original XBT volume.
How to settle a position
Position settlement is executed only via the Advanced order form from the New Order page, or through the API.
Position settlement can only be done through a specific order type. The "Settle Position" order type is only found on the Advanced order tab from the New Order page, make sure it is selected.
To settle a long position, use a buy/settle order type.
To settle a short position, use a sell/settle order type.
The settling leverage amount does not need to match the opening leverage amount, but it does need to be a leveraged order (i.e. minimum 2x) to settle a position. So if the opening position leverage was 5x, then the settling position leverage can be 2x/3x/4x/5x.
The settling order must be in the same currency pair as the opening order.
Specify how much volume you want to settle, you could settle a portion of a position if desired.
Suppose you buy 1 XBT of XBT/EUR at 2:1 leverage (going “long”).
- To settle the entire position, you buy/settle 1 XBT of XBT/EUR (at any leverage).
- To settle half the position, you buy/settle 0.5 XBT of XBT/EUR (at any leverage).
Suppose you sell 1 XBT of XBT/EUR at 2:1 leverage (going "short"):
- To settle the entire position, you sell/settle 1 XBT of XBT/EUR (at any leverage).
- To settle half the position, you sell/settle 0.5 XBT of XBT/EUR (at any leverage).
Settling via API
Settle Position orders work as described in our API documentation under the private user endpoint 'Add Standard Order' (AddOrder) with the "order type" as “settle-position”.
See the entire API documentation here.