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New Collateral Options & Updated Haircuts for Derivatives Trading
In a move aimed at enhancing flexibility and hedging capabilities, Kraken has expanded its derivatives multi-collateral trading suite by introducing new collateral currencies and updating existing haircuts. The changes will significantly benefit Kraken Pro traders seeking to navigate complex market conditions.
New Collateral Options
At the heart of this development is the addition of 12 new fiat and crypto assets that can be used as collateral for futures positions. Traders can now choose from a broader range of options, including AAVE, CAD, DAI, NEAR, MANA, RENDER, RUNE, STX, SUI, TAO, XLM, and XTZ.
This move is expected to provide greater flexibility in managing risk exposure, as traders can now diversify their collateral holdings. The increased range of options will also encourage more users to leverage Kraken’s derivatives product, further enhancing the trading experience on the platform.
Updated Haircuts
In addition to the new collateral assets, Kraken has also updated the haircuts for a number of existing crypto assets. A haircut refers to a reduction in the effective value of an asset, which is designed to maintain a safety margin within the trading system.
This change aims to strike a balance between ensuring market stability and accommodating trader preferences. The adjustments will result in more competitive terms for traders who choose to utilize certain cryptocurrencies as collateral.
Notably, Kraken has reduced haircuts on select assets, including BTC and ETH. This move is expected to provide additional capital efficiency for traders while maintaining the integrity of the trading system.
On the other hand, some assets have experienced increased haircuts due to market conditions and volatility profiles. It’s essential that all users review the updated margin schedule and adjust their strategies accordingly.
Key Takeaways
* Kraken has introduced 12 new fiat and crypto assets as collateral options for futures positions.
* Select existing crypto assets have had their haircuts adjusted, with some experiencing reductions in order to improve capital efficiency.
* The changes aim to enhance flexibility and hedging capabilities for traders utilizing Kraken’s derivatives product.
By expanding its range of collateral options and updating haircuts, Kraken is taking a significant step towards providing an even more comprehensive platform for trading derivatives. The enhanced features will undoubtedly appeal to the growing number of traders seeking to diversify their risk exposure in today’s rapidly changing market conditions.
