If you have multiple collateral currencies, when your loss is realized (regardless of if you close it yourself or it’s closed via an automated liquidation), it will be deducted in the following order of preference: 

• Quote Currency of the pair being traded, if it is one of our collateral currencies
• Base Currency of the pair being traded, if it is one of our collateral currencies
• USD
• EUR
• GBP
• CAD
• CHF
• AUD
• JPY
• BTC
• ETH
• USDT
• USDC
• ADA
• DAI
• DOT
• SOL
• LINK
• ATOM
• MANA
• KTC
• MATIC
• LUNA
• AVAX
• XTZ
• TRX
• Quote Currency of the pair being traded, if it is not a collateral currency
• Base Currency of the pair being traded, if it is not a collateral currency

If the loss is greater than your balance of collateral currencies, other funds in your account will be taken as needed. 

As an example, assume you had a leveraged position on ADA/BTC. 

The order of preference for realizing the loss would be: 

• BTC, because it is the quote currency of the pair being traded; 
• The collateral currencies in the order of preference above; and 
• ADA, because it is the base currency of the pair being traded and is not a collateral currency.

If you do not have enough funds in your account denominated in the quote currency of the pair you are trading to cover any remaining loss, funds in your account will be converted, as necessary, into funds denominated in the quote currency of the pair you are trading, subject to a fee (a 1.5% fee for converting between two cash currencies), 2.5% fee for a conversion of BTC or ETH to or from cash, and a 5% fee for all other conversions). As a result, you may want to execute an order for the type and amount of funds you need before entering into a closing transaction so that your closing transaction does not result in a conversion fee.

Note: If you have multiple open positions on margin, they will be closed in the order they were created following the "First In, First Out" (FIFO) rule. Each individual position will follow the logic outlined above for realizing any loss.

Leverage

Using Kraken Pro, the maximum level of leverage is automatically selected. The level of leverage does not need to match the leverage level you used to open the position. This is because, other than indicating to Kraken’s system that the order you are placing is for a closing transaction, the level of leverage selected is irrelevant in a closing transaction.

Currency pair

The closing transaction order must be in the same currency pair as the order that opened the spot position on margin.

Amount

To completely close an open spot position on margin, enter the same Amount as the opening order. If you execute a closing transaction order for more volume than your spot position on margin, you will effectively create a new spot position on margin on the opposite side (this is called “flipping” the position).

'Zero volume' feature 

To close the full volume of all open positions for a specific pair, you can place '0' as the amount of a closing transaction order. This can be useful to close all open spot positions on margin for a specific pair with one order, to close spot positions for a specific market during periods of volatility when the position size is changing frequently, or to close small remaining volumes of open spot positions on margin. 

• To close the entire position, you need to sell 1 BTC of BTC/EUR in a closing transaction (at any leverage - the specific level of leverage selected is irrelevant).
• To close half the position, you need to sell 0.5 BTC of BTC/EUR in a closing transaction (at any leverage - the specific level of leverage selected is irrelevant).
• To flip the position by 100%, you need to sell 2 BTC of BTC/EUR in an opposing spot transaction on margin (at any leverage - the leverage amount will apply to the new position and determine the collateral withheld).