By using an extension of margin* from Kraken, you incur corresponding obligations and agree to comply with certain conditions until those obligations are satisfied. We refer to those circumstances where you have entered into a spot transaction on margin, but not yet satisfied these corresponding obligations, as an “open position.”

Once a position is open, the amount of funds used as collateral are not available for trading or withdrawal until the position is closed. As a result, when you enter into spot purchases or sales of cryptocurrency using margin on Kraken, the assets you receive from the market are reflected in your “positions” tab, which is separate from your “balances” tab. See “Differences in spot trading with and without the use of margin.”

Although reflected in this separate, “positions” tab, when you use margin on Kraken you are using an extension of margin to make an actual spot purchase or sale of cryptocurrency to a counterparty on the Kraken spot market exchange. You own and control the assets you receive in these margined spot transactions and can withdraw them from your Kraken account at any time subject only to the restrictions set forth in our Terms of Service.

*Availability of margin trading services is subject to certain limitations and eligibility criteria.