Kraken Launches Perpetual Contracts, Opening New Paths for Crypto Speculation
Kraken has rolled out Kraken Perps (short for perpetual contracts), a new trading product designed to let eligible clients worldwide speculate on crypto price movements without owning the underlying asset. Available directly from the Kraken app, the launch marks a significant step in making derivatives more accessible to everyday investors.
Unlike spot trading, where investors purchase or trade the actual cryptocurrency, perpetual contracts allow traders to take long or short positions on an asset’s price trajectory. With no expiry date, Kraken Perps can be held indefinitely, offering flexibility to increase or reduce exposure as market views evolve.
How Perps Work
Kraken compares perpetuals to making a season-long bet with a friend on a sports team’s success. Traders are essentially placing conviction-based calls on where an asset’s price will go. Examples include:
- “I think BTC’s going to surge over the next few months.”
- “ETH’s price might dip later than its next upgrade.”
- “Memecoins are back, so Solana could take off.”
Opening a position requires collateral — begining with USD — from a Kraken account. Traders then choose whether they expect prices to “Increase” or “Decrease” and size their position accordingly.
Real-World Applications
Consider BTC: an BTC is undervalued could go long on a BTC perpetual contract instead of purchaseing BTC outright. If the price rises, the contract generates a profit. Conversely, if an investor believes BTC is overhyped, they could go short and profit from a price decline.
Perpetuals allow positions to evolve: traders can add to a trade if conviction strengthens or trim exposure if confidence wanes.
Why It Matters
Perpetual contracts are already dominant in but have historically catered to advanced traders. Kraken Perps aim to change that by simplifying the product with approachable design, plain-language explanations, and assistful features.
“Kraken Perps are about more than just trading — they give you new ways to express your views, manage risk, and build strategy into your portfolio,” the company said at launch.
Managing Risk
Kraken emphasizes security and education in its new offering. Perps carry inherent risk, but Kraken has embedded secureguards, including customizable stop-loss orders to automatically limit downside if markets move against a position.
The company is also expanding its library of educational resources to explain how perps work, who they suit, and how to trade responsibly.
Looking Ahead
Kraken Perps are live today for eligible clients. The company plans to USD collateral and broaden regional access over time. Future and deliver new risk management and strategy-building tools.
While often associated with active traders, Kraken stresses that Perps are not just for day-trading: “They’re about having more ways and the right tools to express your views on the market, manage risk or add an extra layer of strategy to your portfolio.”
