Kraken has announced the launch of Kraken Perps, a new tool for trading perpetual contracts aimed at simplifying access to derivatives for retail investors.
How Perpetual Contracts Work in Kraken Perps
Perpetual contracts, or 'perps,' allow users to take long or short positions based on their views of price movements without owning the asset. A key feature of Kraken Perps is that they have no expiration date, allowing traders to hold positions indefinitely, modify the exposure size, or close them at any time.
Accessibility and App Distinctions
Kraken Perps are available directly in the main app, making the interface simpler and lowering entry friction for retail users. Access to this feature is limited to certain regions based on eligibility requirements, meaning not all users can utilize the service.
Risk Management and New Offerings
The launch of Kraken Perps includes risk management, as perpetual contracts can be risky, especially with leverage. Built-in protections such as stop-loss orders automatically limit losses in adverse market movements. Kraken is also expanding its tokenized equities product, xStocks, now including over 60 U.S. stocks and ETFs.
The launch of Kraken Perps makes perpetual trading more accessible and comprehensible for retail investors. With USD collateral, customizable stop-loss tools, and integration into the main Kraken app, these new perps lower barriers for derivative trading. The expansion of tokenized equities also indicates Kraken's commitment to enhancing its product offerings.
