Where do funds for spot transactions on margin come from?

Kraken’s own funds are used to extend margin to clients for trading. When placing an order that involves a margin* extension from us, you post collateral and pre-authorize and instruct us to execute automatic liquidations, among other things, in the circumstances and manner described in our Terms of Service.

For more information, see Leverage and Margin in the Trading Guide.

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