Doing trade with Kraken is really a great fun because of easy accessibility and innovative functionality. Its amazing functionality with margin trading allows the traders to acquire a good profit without loss.
However, there are many users who may find some issues at the initial stage when they need to open a margin position with Kraken. Opening a position usually happens when anyone user receive advance funds. And in this position, a user becomes able to leverage their trade.
Process for creating margin position
Usually, there are two types of position that allow user for opening position whether wants to go short or long. And, to open a long position, the exchange platform will advance EUR for purchasing ETH. On the other hand, if anyone wants to go for short position, they will need to advance ETH for selling it to EUR.
And, for creating margin order, one need to enter everything just same as the regular spot trade. Nonetheless, amount filled here still signify the order size along with the price parameters of order types.
If a user selects, a level of leverage means order, and when execute, will implement trade through advanced financed rather than a trade directly from your account, Hence, you may choose “intermediate and advanced forms’ leverage.
As, soon the user gets logged to their account, a user reach to the tab “New Order” and then enable margin trading while selecting intermediate. Now, a user will be able to sell or buy with the use of leverage shown on the right of the screen.
One may suppose that if a user decided to use a leverage amount of 3:1, it signifies that it will triple the buying power of the user. And, when a user wants to go long, they will need to setup an order to buy.
Now, finally a user will need to setup the type of order where they will need to select the market when they are decided to go to the market. And, they will also need to choose “limit” when they want to execute the trade while the price reaches to certain limit.