Kraken exchange introduces FX perpetual futures
Kraken has announced the launch of a new asset class called FX perpetual futures (FX perps), which will allow traders to engage with the largest financial markets directly through Kraken Derivatives.
The initial offerings include EUR/USD and GBP/USD pairs, both available with a leverage of up to 20x, with plans to introduce more forex pairs in the near future.
According to the exchange, this new feature aims to enhance the trading experience for clients by providing a powerful tool to navigate and manage exposure to popular currency markets within the crypto space.
FX perps are perpetual contracts that are based on forex market indices, specifically benchmarked to DxFeed’s Composite Forex Index. Unlike traditional contracts, these perpetual contracts do not have an expiration date, allowing traders to remain active in the forex market continuously. This flexibility enables them to refine their trading strategies and seize real-time opportunities.
The functionality of FX perps includes real-time updates, with data refreshing every second during the open hours of the underlying forex spot market. This ensures that traders have access to the most current market movements for informed decision-making.
However, there are specific rules in place to maintain fairness and integrity when the forex market is closed. For instance, there are zero funding payouts if the index price becomes stale unless a significant portion of premium observations is recorded. Additionally, a price collar restriction limits orders to a 4% range of the last observed index price to prevent unreasonable trades.
FX perps are integrated into the familiar Kraken Pro platform, providing a seamless trading experience for both novice and experienced traders. While the markets operate 24/7, price updates adhere to traditional forex market hours, allowing traders to place orders at any time while still reflecting standard market opening and closing times.
Currently, FX perps are available in select eligible markets, with plans for expansion to additional regions in the future. Kraken aims to provide traders with enhanced access to real-time forex opportunities, combining deep market liquidity with a user-friendly platform designed for optimal performance.
