Kraken, the renowned cryptocurrency exchange, is expanding its trading capabilities by introducing new margin pairs, including the popular Shiba Inu (SHIB) token. Other notable additions to Kraken’s margin trading options are ICP (Internet Computer), PEPE, and WIF (Dogwifhat), each offering customized leverage and position limits.
One of the standout features of the new margin trading pairs is the SHIBUSD pair, which provides traders with 3x leverage. This means that traders can open positions with a high trading volume of up to 1.5 billion SHIB. However, it’s important to note that this new addition is exclusively available on Kraken Pro, the exchange’s advanced trading platform.
Margin trading allows traders to use borrowed funds to potentially increase their profits. However, it also entails higher risks and costs, including fees for opening, holding, and closing positions. Traders must maintain at least one collateral currency and adhere to specific platform and regulatory compliance requirements to engage in margin trading.
In addition to expanding margin trading options, Kraken has been actively promoting the liquidity and accessibility of Shiba Inu. In 2023, the exchange launched SHIB/USD perpetual futures, offering up to 10x leverage for its average users. This was a significant enhancement for Shiba Inu traders who wanted to capitalize on market movements through futures contracts.
To attract more traders, Kraken offered a fee adjustment during a 100-day promotional period last year. It waived maker fees and charged only 0.01% taker fees for SHIB and PEPE perpetual futures trading. This made it more cost-effective for traders to engage in frequent and high-volume trading strategies.
The latest development comes at a time when Shiba Inu has gained support from multiple exchanges. Binance Japan recently introduced a Shiba Inu trading pair denominated in the Japanese Yen, while Crypto.com launched a new SHIB trading pair in January.
Traders should be aware of the geographic and regulatory restrictions that may apply to Kraken’s services. These restrictions can affect the availability of certain trading options depending on the trader’s location, highlighting the importance of compliance with local laws and exchange policies.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.