- Kraken doubled BTC/USD margin leverage to 20x for eligible traders in select markets.
- Higher leverage lets traders use less capital but also increases potential losses.
- Kraken kept its margin rules and risk controls unchanged despite the higher limit.
Kraken has doubled the maximum leverage on BTC/USD margin trades to 20x for eligible customers in select markets.
The change is available to users of Kraken Pro and applies only to BTC/USD margin positions. Kraken said the higher limit does not affect its futures products or other margin pairs.
Higher Leverage, Same Controls
Kraken said its margin engine, fees, order flow and risk controls remain unchanged. Liquidation prices and margin requirements will also continue to determine when positions are closed.
The higher limit means traders can put up less capital for a position of the same size, or take a larger position with the same amount of capital. It also increases the potential losses if Bitcoin moves against the trade.
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Kraken described the 20x limit as a tool rather than a target for traders.
Leverage Risks Remain
The move comes as traders continue to take large leveraged positions in Bitcoin. One recent trade involved a $50 million Bitcoin position using 40x leverage. The position was reportedly about $400 from liquidation, showing how quickly highly leveraged trades can come under pressure when prices move sharply.
Kraken’s 20x limit is available only to eligible traders, with local regulations restricting access in some markets.
Binance is also adding another leveraged Bitcoin product. The exchange plans to launch a DOSUSDT perpetual futures contract with up to 20x leverage, with trading scheduled to begin Aug. 12.
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