Crypto futures trading has emerged as a powerful tool for investors looking to capitalize on short-term price movements—without the need to own the underlying digital assets. Platforms like Kraken have made it easier than ever to access advanced trading instruments, offering leverage, diverse contract types, and intuitive interfaces. Whether you're hedging existing positions or speculating on market trends, Kraken’s futures offerings provide flexibility and high liquidity.
This comprehensive guide walks you through everything you need to know about trading crypto futures on Kraken in 2025—from account setup and leverage options to fees, contract types, and unique features like Futures Brawl. Let’s dive in.
Understanding Crypto Futures on Kraken
Crypto futures are derivative contracts that allow traders to buy or sell an asset at a predetermined price on a future date. Unlike spot trading, where ownership of the actual cryptocurrency is involved, futures let you profit from price changes without holding any coins in your wallet.
Kraken futures operate within a secure and regulated environment, making them ideal for both intermediate and experienced traders. These contracts remain in your exchange account until settlement or closure, enabling faster execution and streamlined management.
One of the most strategic uses of futures is hedging. For example, if you hold Bitcoin and anticipate a market downturn, you can open a short position on BTCUSD futures. As the price drops, gains from the short position offset losses in your portfolio—effectively protecting your capital during volatile periods.
👉 Discover how futures can boost your trading strategy with real-time tools and deep liquidity.
Kraken Futures Fees: A Tiered Pricing Model
Kraken employs a transparent, volume-based fee structure for futures trading, divided into maker and taker fees across eight tiers. This incentivizes higher trading volumes by reducing costs for active traders.
- Maker orders (limit orders that add liquidity) are rewarded with lower fees.
- Taker orders (market orders that remove liquidity) incur slightly higher charges.
The fee schedule adjusts based on your 30-day trading volume:
- Traders with less than $100,000 in volume pay 0.02% (maker) / 0.05% (taker).
- Top-tier traders exceeding $100 million in monthly volume enjoy 0.00% (maker) / 0.01% (taker).
Notably, Kraken does not require holding its native token to qualify for reduced fees—a refreshing approach compared to other exchanges.
Available Assets and Contract Types
Kraken supports futures trading on major cryptocurrencies paired against USD and EUR:
- BTCUSD
- ETHUSD
- LTCUSD
- BCHUSD
- XRPUSD
- BTCEUR
- ETHEUR
Each pair offers three standard contract durations:
- Perpetual (no expiry)
- Monthly
- Quarterly
Additionally, BTCUSD and ETHUSD include semi-annual contracts, giving long-term traders more strategic options.
How Kraken Futures Work: Leverage & Contract Mechanics
To trade futures on Kraken, you must first complete identity verification at the Intermediate level or higher. Once approved, access the dedicated futures platform via Single Sign-On (SSO).
Trading mechanics resemble spot markets but introduce two critical components: leverage and contract timelines.
Leverage: Amplify Gains (and Risks)
Kraken offers up to 50x leverage on perpetual contracts, allowing you to control larger positions with minimal capital. However, leverage magnifies both profits and losses—making risk management essential.
Leverage is tiered based on contract size:
| Margin Level | Max Leverage |
|---|---|
| Level 1 | 50x |
| Level 2 | 25x |
| Level 3 | 17x |
| ... | ... |
| Level 10 | 2x |
For instance, a $100,000 BTCUSD perpetual contract falls under Level 1 (≤$500,000), requiring just 2% initial margin ($2,000).
Contract Timelines
- Perpetual contracts: No expiry; funded every 8 hours.
- Fixed-term contracts: Monthly, quarterly, or semi-annual expiry.
This variety allows traders to align strategies with market outlooks—short-term speculation or long-term positioning.
Step-by-Step: How to Trade Futures on Kraken
1. Create a Futures Account
Visit Kraken’s futures portal and sign up or log in if you already have an account. Complete KYC verification to unlock futures access.
2. Launch the Trading Terminal
After logging in, click “Start Trading” to enter the futures interface. Note: This is separate from the spot trading platform.
The terminal features TradingView-powered charts, real-time order books, and integrated trade panels—ideal for technical analysis and rapid execution.
3. Choose Your Contract
Navigate to the Market Preview section to select:
- Trading pair (e.g., BTCUSD)
- Contract type (perpetual, monthly, etc.)
4. Fill the Order Form
Specify:
- Buy (Long) or Sell (Short)
- Order type: Limit, Market, or Stop
- Leverage level (adjustable based on position size)
👉 Access advanced charting tools and real-time data to refine your entry and exit points.
5. Execute the Trade
Click “Buy (Long)” or “Sell (Short)” to place your order. It will appear in the Open Orders panel until filled.
6. Close the Position
To exit, simply place an opposite trade:
- Close a long with a sell order.
- Close a short with a buy order.
Profits or losses are settled instantly in your futures wallet.
Funding Rates: Keeping Prices Aligned
Exclusive to perpetual contracts, funding rates ensure the futures price stays close to the spot market price. Every 8 hours, traders exchange small payments:
- In bullish markets → Longs pay shorts
- In bearish markets → Shorts pay longs
These peer-to-peer transfers prevent extreme divergence and stabilize trading conditions. Kraken calculates rates dynamically based on market imbalances.
Initial and Maintenance Margin Requirements
Initial Margin
This is the upfront collateral required to open a leveraged position:
| Level | Initial Margin |
|---|---|
| 1 | 2% |
| 2 | 4% |
| ... | ... |
| 10 | 50% |
Higher leverage = lower initial margin—but also greater risk.
Maintenance Margin
The minimum equity needed to keep a position open:
| Level | Maintenance Margin |
|---|---|
| 1 | 1% |
| 2 | 2% |
| ... | ... |
| 10 | 25% |
If your balance drops below this threshold, you may face liquidation.
Unique Feature: Kraken Futures Brawl
Looking for fast-paced action? Try Futures Brawl, a one-on-one trading game where you predict price direction over 1 or 5 minutes.
Steps:
- Enter the Brawl section.
- Choose contract size.
- Bet on price going up or down.
- Get matched with an opponent taking the opposite side.
After the timer ends, the correct predictor wins. You can also manually close after 10 seconds to lock in gains or cut losses.
It’s a fun way to test instincts—though still carries real financial risk.
Does Kraken Offer a Futures Bonus?
While Kraken doesn’t currently advertise a direct signup bonus for futures trading, some third-party referral programs may offer incentives. Always verify promotional claims through official channels.
Frequently Asked Questions (FAQ)
Q: Is Kraken futures available to all users?
A: No. You must complete Intermediate-level verification or higher to access futures trading.
Q: What is the maximum leverage on Kraken?
A: Up to 50x on perpetual contracts for eligible traders, depending on position size.
Q: How are funding fees calculated?
A: Funding rates are recalculated every 8 hours based on the premium between futures and index prices.
Q: Can I practice before trading live?
A: Yes. Kraken offers a demo platform where you can simulate futures trades risk-free.
Q: Are there penalties for holding perpetual contracts long-term?
A: Not exactly—but you’ll pay or receive funding fees every 8 hours based on market conditions.
Q: What happens if my position gets liquidated?
A: If your margin falls below maintenance levels, Kraken will automatically close your position to prevent further losses.
👉 Learn how to avoid liquidation with smart leverage and stop-loss strategies.
Final Thoughts
Kraken provides a robust, user-friendly platform for crypto futures trading in 2025, combining deep liquidity, competitive fees, and innovative features like Futures Brawl. With support for up to 50x leverage and multiple contract types, it caters well to active traders seeking exposure beyond spot markets.
However, high leverage demands discipline. Beginners should start small—or use demo accounts—to build confidence before going live.
Whether you're hedging portfolios or chasing short-term moves, understanding margin requirements, funding mechanics, and risk controls is key to long-term success on Kraken’s futures market.