Margin on US Futures

Trading futures on Kraken Derivatives US, a regulated Futures Commission Merchant (FCM) registered with the Commodity Futures Trading Commission and with the National Futures Association (NFA), requires an understanding of margin—the funds needed to open and maintain a position. Margin helps facilitate leverage and manage risk exposure, but it does not eliminate the possibility of liquidation due to market volatility. Kraken Derivatives US uses multiple types of margin rules, aligned with exchange standards and our own clearing policies.

Important Note: The Kraken Derivatives US risk team evaluates market conditions in real time and reserves the right to adjust intraday margins in accordance with market volatility. If required, temporary changes to the amount of margin required for trading may be made without prior notification.

Intraday Margin is the minimum balance your account must maintain per contract while in a trade during normal U.S. trading hours. Intraday margin rates are effective from the product's open until 15 minutes before the session close, when initial margin is required.

Intraday margin applies during active trading hours, which vary by product and exchange. For CME-listed contracts, these typically run from 9:30 AM to 4:00 PM ET. For Bitnomial-listed perpetual futures, intraday margin applies continuously while the market is open.

Initial Margin is the balance required to carry one contract to a new trading session. Initial margins are set by the exchange and represent the amount required to hold a position into the next trading session.

For CME-listed contracts, a trading session refers to the defined market hours for a product as set by its exchange. CME futures trade nearly 24 hours a day but are divided by exchange settlement times. Carrying a position past one session into the next requires sufficient initial margin. Initial margin is required around 3:45pm CT to maintain a position into the next day.

For Bitnomial-listed contracts (i.e. perpetual futures), perpetual futures trade 24/7 and do not have defined trading sessions. Intraday margin (reduced margin requirements) applies continuously while the market is open, but initial margin is still required as of 3:45pm CT

Maintenance Margin is the amount required to carry the same position for multiple days.

For information on maintenance margin requirements, please refer to the exchange's website.

Intraday margins may be set to 4X or more of our standard rates 15 minutes before the release of key economic news announcements. Kraken Derivatives US reserves the right to modify these levels at any time based upon market conditions The temporary elevated margin requirements will remain in place for approximately five minutes following the announcement once market volatility is determined to present a manageable risk for our traders. Margin requirements may also be raised when opening up high quantities of a single contract. Please pay close attention before submitting a trade and be aware that these elevated margin rates apply only when entering a new position, which may present significant risk to the account.

Each contract on Kraken’s platform has a Contract Specifications window that explains the requirements of each contract. Clicking any instrument opens a detailed contract page showing:

Knowing the exchange for a product is useful when considering market data access. CME-listed contracts may require a market data subscription depending on your Professional or Non-Professional status. Bitnomial-listed perpetual futures market data is free for all clients — no subscription required.

Kraken Derivatives US monitors your positions in real time against both intraday and initial margin thresholds. If your account falls below required margin levels, your positions may be automatically liquidated.

Liquidation is triggered when your account equity can no longer support the required maintenance or intraday margin for your open contracts. Kraken Derivatives US executes the liquidation and determines which positions are closed. These events are reflected in your Kraken platform.

Even if a position is currently profitable, it may still be liquidated if your account equity falls below the required margin. For example, if you are long one contract that is in profit but also hold several other losing positions, your overall equity could drop below the required level. In this case, the profitable position may be liquidated first to bring the account back into compliance.

Example:

Imagine your account has $5,000 equity. You open position A (long 1 contract) that gains +$1,000 in unrealized profit.

At the same time, you open Position B (short 2 contracts) that loses -$2,800.

Even though Position A is profitable, your total account equity is now:

$5,000 + $1,000 - $2,800 = $3,200 equity

If the required margin for your open contracts is $3,500, your account is under-margined by $300. In this case, liquidation may occur, and Position A (the profitable trade) could be closed first to bring your account back into compliance.

Liquidation fees depend on the products in your account:

Kraken Derivatives US provides several ways for traders to monitor their portfolio health and margin usage:

It is the trader’s responsibility to monitor margin levels continuously. Failure to maintain adequate margin may result in automatic liquidation without notice, and Kraken Derivatives US is not liable for losses resulting from such actions.

Trading futures involves substantial risk and is not suitable for all investors. Leveraged products amplify both gains and losses. Please review our Risk Disclosure Statement before trading.