Kraken Launches Crypto Options for EEA Clients on Kraken Pro
Eligible clients in the European Economic Area can now trade crypto options on Kraken Pro using the same account and collateral as their futures positions.
Kraken Launches Crypto Options for EEA Clients on Kraken Pro
Eligible clients in the European Economic Area can now trade crypto options on Kraken Pro using the same account and collateral as their futures positions.
Options Trading Comes to Kraken Pro
Cryptocurrency exchange Kraken has announced the rollout of options trading for eligible clients in the European Economic Area on Kraken Pro, according to a company blog post. The new derivatives offering allows traders to engage with price, volatility, and time simultaneously, going beyond the single dimension typically offered by futures contracts.
Clients can utilize options to hedge existing exposure or express specific market views without needing to pick a directional outcome. The instruments are available on both web and mobile platforms directly from existing derivatives accounts in supported EEA countries, eliminating the need to set up a new wallet or transfer additional collateral.
Regulatory Framework and Setup
The expansion into European options is supported by the platform's MiFID license, allowing the venue to serve EEA clients within a regulated environment. Investment services related to these instruments are carried out by Payward Europe Digital Solutions (CY) Limited, which is authorized and regulated by the Cyprus Securities and Exchange Commission with license number 342/17.
Digital assets associated with the service are held in custody by Payward Europe Solutions Limited as a MiCA custodian. The setup provides a shared wallet system across spot, futures, and options, utilizing the same collateral with portfolio margin enabled by default and USD settlement.
Trading Mechanics and Risk Disclosures
Options on the platform are executed through a Request for Quote system, enabling users to construct multi-leg trades containing up to five legs and review time-limited quotes before making a binding acceptance. Before gaining access to trade these complex instruments, users are required to complete a mandatory appropriateness assessment.
The exchange notes that options carry significant risk, as the value of an option can fluctuate rapidly based on the underlying asset's price, market volatility, and time to expiration. Buyers can lose the full value of their position, while sellers face potential losses that can exceed posted margin requirements.
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