Kraken, a well-known cryptocurrency exchange, is broadening its offerings by introducing forex perpetual futures (FX perps).
This move marks Kraken’s foray into traditional finance, beginning with the EUR/USD and GBP/USD trading pairs, two of the most popular currency pairs in the world.
These new FX perpetual futures allow traders to wager on forex price moves with no expiry date, meaning they can hold their position permanently. Kraken provides leverage up to 20x, so users can trade with far more buying power than they currently have.
The new contracts are based on DxFeed’s Composite Forex Index, which ensures the pricing reflects the real-world forex markets. Kraken Pro users can trade these FX perps 24/7, although the prices only update in real time when the traditional forex markets are open.
Kraken’s FX perps also have protection. When the forex markets are shut and prices get stale, there are no funding payments except when sufficient price observations are made. Additionally, there are price collars so that trades will not occur too far away from the last known price to limit the risk of large price movements in times of low liquidity.
Kraken’s FX perps also come with safeguards. When the forex markets are closed and prices become stale, there are no funding payments unless enough price observations are made. Plus, there are price collars to prevent trades from happening too far from the last known price, reducing the risk of big price swings in low-liquidity periods.
This launch follows another big move from Kraken, commission-free stock and ETF trading, signaling the platform’s growing interest in traditional markets.
Kraken plans to add more forex pairs and expand FX perp access to more countries soon. For now, traders in eligible markets can try out the new FX perps on Kraken Pro, using a familiar platform while exploring a broader range of asset classes.
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