What are derivatives?
A crypto derivatives contract is an agreement between a buyer and a seller that represent opposite views of the future value of a cryptocurrency. Traders use derivatives contracts to take a view on the derivative price of an asset without having to own any of that asset. A buyer profits if a contract’s underlying asset (such as BTC, ETH, or another cryptocurrency) increases in price, while a seller profits if it declines.
Check out our Kraken Learn Center article What are crypto derivatives contracts? to learn more.
How is derivatives trading different from spot trading?
Unlike the spot market, derivatives can provide exposure to a cryptoasset’s price without having to actually own the cryptoasset itself. With Kraken Pro, derivative traders can place any collateral assets listed here, to trade any one of the 115+ perpetual derivatives we offer.
Depending on the asset and amount traded, different leverage levels apply, which enables more capital-efficient trading. You can find our Derivatives’ margin schedule here. With up to 50x leverage, you can enter into a position with just 2% (1/50) of the contract’s actual value (also known as its notional value).
How do I get started with Derivatives in Kraken Pro?
You can either sign-up via the competition page in Kraken Pro, or, follow these steps to get started:
- 2Make sure you are verified to Intermediate or Pro.
- 4Visit the Kraken Pro competition page to accept the Derivatives Terms & Conditions and register to participate and unlock Derivatives trading.
- 5That’s it! There will be a $10 USD bonus to start trading Derivatives straight away. You can also add your own funds into your Derivatives Wallet (follow instructions for Kraken Pro).
Who is eligible to participate in the Kraken Derivatives Competition?
You are eligible to participate in this competition if:
- You are in an eligible country.
- Your Kraken account is verified to either Intermediate or Pro.
- Your 30-day trade volume exceeds $2,500.
What are the rules of the Kraken Derivatives Competition?
- Only one trading account is allowed per person or entity.
- Participants can only receive the $10 USD collateral bonus once.
- Any trading activity in sub accounts will be ignored for the competition.
- Kraken reserves the right to disqualify participants who abuse the competition’s rules.
Read Kraken’s terms and conditions for all competition rules.
How do I claim $10 USD bonus as collateral?
The $10 USD bonus will be automatically deposited in your Derivatives trading wallet upon registration. This will appear as ‘Bonus USD’ collateral in your Derivatives Wallet. You can use this collateral immediately to enter into a new position. The $10 cannot be transferred out of your Derivatives Wallet. Kraken will reclaim the $10 USD bonus from non-trading (idle) participants at the end of the competition.
Can I use my own funds to trade in the Kraken Derivatives Competition?
Yes. While all participating traders will receive their $10 USD bonus upon registration, they may also trade with their own capital at any time during the competition. Winners are determined by PnL% rather than total notional profits, so traders only using the $10 USD bonus can still win.
What happens to my positions at the end of the competition?
All positions opened during the competition will remain open after it ends.
More information
- Read more about Kraken Derivatives in our Support Center article What are derivatives & other frequently asked questions.
- Learn the basics of trading derivatives in our Learn Center article What are crypto derivatives contracts?
- For our full collection of Kraken Derivatives documentation, see our Support Center section for Kraken Derivatives.