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Should You Trade with Kraken Futures? Let’s Investigate

Kraken Futures have come into the limelight in the recent time. The trading volume has shot up to 350 Million U.S. Dollars, making a new record in 24 hours, last month. There are of course many other platforms in the market today, but why Kraken is gaining so much of popularity is matter to ponder about. In this article, you will get insights on why it is beneficial to invest in the Kraken platform.

To begin with, by looking at the fact that the platform offers the fifty times the leverage and spot trading on its platform is a sure thing to attract traders and investors. Other factors include thirty percent revenue sharing with the traders in the form of fees payback, if offers to its traders a chance to get the unfilled liquidations at suitable rates, the platform offers fantastic liquidation method, Kraken is a high performance-driven platform, smooth and user friendly transfer between futures and spot, sturdy and reliable indices, etc. There are many such unique aspects to the platform that make the platform a big hit, and it is today. So, without wasting any time, let us start discussing them in detail-

The Revenue Sharing Program (RSP)

RSP, i.e. ‘Revenue Sharing Program’ is a unique feature that brings Kraken a lot of popularity. It was launched in February This year. As per this program, those traders who participate actively on the platform and therefore contribute to the liquidity to the platform are rewarded by Kraken Futures. It leads to higher trading volume percentage and well-managed spreads. It enables traders to participate and come off the trading commitment swiftly. This program is accessible to everyone and the same rules apply to all. The salient features of this program are as follows-

  • The Kraken Futures return thirty percent of the revenue to its users.
  • The basic payout in every seven days is approximately 25k U.S. Dollars. It has varied based on the circumstances. In certain cases, the amount has gone up to 200K U.S. Dollars too.
  • On average, the consistent traders on Kraken Futures have been earning a decent amount of 10K U.S. Dollars in every seven days. It all depends on the liquidity a trader offers to the platform. The amount payable can glance through the option called ‘Revenue Share’ in the trading interface.
  • The revenue to be returned is calculated based on the amount of liquidity, the user or the trader has contributed to the platform, and based on that the revenue is paid.
  • There is no need for any special attempt to participate in the Revenue Sharing Program. Just by participating in the platform, the user gets into it by default.

Position Assignment System-

‘Position Assignment System’ or PAS is a smart solution to the blockage or difficulty in the liquidation of a certain type of orders. This often happens during big price shifts in major cryptocurrencies. During this time, the positions often come down way beyond the minimum margin category.

To this problem, Kraken Futures has come up with a smart solution, which is called- Position Assignment System or PAS. The platform offers an option called-immediate-or-cancel order’ in the order books of the traders. It enables the liquidation of the position properly.

In case of large orders, the platform offers a partial offering of the position. The part which is not getting liquidated is then transferred to another trader who has volunteered for receiving the partial order. The advantages of receiving such assignments are-

  • The trader gets suitable rates.
  • The remaining order gets easily liquidated.
  • The liquidation then comes under the trader who has received it.
  • Higher the liquidation, higher is the ‘Revenue Sharing Program’ rewards.

How to participate in PAS?

It is very easy to be a part of PAS. The user simply needs to give his or her preference details through the platform’s interface. It is open for all the traders on the platform. In the interface, the user can set the upper limit of the assignment size to be received. Upon receiving the assignment, the trader gets informed by an email about the profits that are generated due to the suitable rates on which the trader got the assignment.

Kraken values its client’s money-

What happens when a trader fails to maintain the margin requirement? Yes, this question has a dreaded answer- the remaining maintenance margin is also taken away, which makes the liquidation process so hard and expensive to maintain!

Well, at Kraken Futures, the story is different and much more client-friendly. When a trader faces the fall below the maintenance margin, instead of pushing him or her down the spiral of more worry, the Kraken platform rather opts for a softer approach. Upon reaching the lowest of maintenance margin, the position gets liquidated, but the Kraken Futures credit the trader’s account with ‘proceeds from the liquidation.’

It has saved so much money on the client-side. In the past few months, because of this system around liquidation, a hefty amount of 2500K U.S. Dollars in the collateral have got saved. This money usually gets wasted on other platforms. With such programs in place, customer loyalty and overall popularity become obvious.

Robust Trading Engine Offers High performance-

Anytime when the order submission error arises, it is the trader who is at the losing end. This often happens in the case where there is a volatile asset involved which naturally brings in high leverage. In such cases, the exchange’s performance plays the deciding factor’s role. Looking at the problem, the platform has come up with a strong, robust trading engine that offers fantastic speed, and which doesn’t put the trader in critical money-losing situations.

There are various salient features of this trading engine by Kraken. Some of them include- the recalculation of the PnL and margin many times every second, CME CF methodology offers indices calculation every second, ROE and leverage details are visible on the open positions, the trader can easily close the market price in just two clicks, regular emails are sent to the traders informing them about the latest update on the liquidation, and so on.

The difference in performance between Kraken Futures and its competitors is quite high.

  • On the one hand, where the competitors take about two to three seconds to calculate the mark rate, Kraken does many times in just a second.
  • It gives the Kraken traders an upper hand on performance, and trading during the high fluctuating levered position.
  • The Kraken engine easily handles 15,000 orders every second.
  • This further offers the users a good amount of API limits.
  • The trader is given an option to ‘whitelist’ any IPs. It helps in reducing the latency to on an average of one to two milliseconds.

The transfer between Futures and Spot made easy-

The trading funds of the clients are given due respect by the Kraken Futures. Often it is seen that the trader needs to use several platforms for keeping funds to get a grip over price inefficiencies. To help the traders to save the money, time, and effort, Kraken Futures offer a smooth platform where the user can easily transfer between futures and spot. The exchange offers two markets in one place, meaning the user can use the spot market as well as the futures market on the same platform. By saving user’s time and effort, the efficiency increases many folds.

Usually, when we look at other exchanges, we will find that the time taken to process transfers is usually once in every 24 hours. But here at Kraken, the user can withdraw funds at any time of their choice and that within a very short time.

Reliable Indices-

An index is a very important part of the final settlement. Any lag or any loophole in its construction can result in serious issues. An ill-structured index can cause market manipulation and also cause unpredictability. Further, it may lead to slow updates that cause losses in the fast trading environment.

That is why a well-structured index becomes integral and important. The Kraken exchange offers the following features-

  • It uses trustworthy, crypto exchanges for information input.
  • These exchanges are further kept under tight supervision to keep any issues at bay and are updated sixty times in a minute.

Our say-

In short Kraken Futures, bundles great features for the user to enjoy. When an exchange is packed with great features such as- Revenue Sharing Program (RSP), Position Assignment System (PAS), high-performance trading engine, robust indices, etc.; it is just stating the obvious that by all means go ahead and trade on this platform. Unlike other exchanges, Kraken Futures pays a sensitive approach to the traders’ money and allows them to easily transfer from Futures to Spot. It is a crypto exchange with a difference, and its heart lies with the customer’s benefits. That is the secret why Kraken Futures has become a majority favorite in such a short time.

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Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.
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