Kraken launches 20x leveraged forex futures for two major pairs

Kraken has introduced forex perpetual futures contracts to its Kraken Pro platform, marking a significant expansion of its offerings beyond cryptocurrencies.

The new contracts, launched on April 18, allow traders to access the euro-US dollar (EUR/USD) and British pound-US dollar (GBP/USD) pairs with up to 20x leverage and no expiry date, distinguishing them from traditional futures which require periodic settlement.

These forex perpetual futures are benchmarked to DxFeed’s Composite Forex Index, ensuring real-time pricing updates every second while the underlying forex spot market is open.

When the spot market closes, Kraken applies special measures, such as zero funding and a 4% price collar, to maintain fairness and limit volatility.

“By introducing FX perps, we’re capitalising on this market-leading position by providing clients with a powerful new tool to better navigate and tailor exposure to some of the most widely traded currency markets in crypto today,” stated Alexia Theodorou, Kraken’s Head of Derivatives.

The launch is part of Kraken’s broader strategy to become a multi-asset platform, integrating traditional and digital asset trading.

This year, Kraken clients have traded $5.4 billion in FX spot volume, with $3.5 billion concentrated in EUR/USD and GBP/USD pairs, which are now available as perpetual futures.

Kraken’s expansion comes amid increased competition from both crypto exchanges and traditional brokers, as well as a series of recent initiatives, including the introduction of commission-free trading for U.S. stocks and ETFs, a partnership with Mastercard for a crypto debit card, and the acquisition of NinjaTrader for $1.5 billion.

The addition of forex perpetual futures positions Kraken as a bridge between crypto and fiat markets, offering institutional and retail traders a unified platform for trading multiple asset classes.

With more forex pairs expected to be added soon, Kraken is aiming to capture a wider segment of the online trading market.