TL;DR
- Eligible clients in the EEA can now trade BTC and ETH options on Kraken Pro, on web and mobile, from their existing Derivatives account.
- Options are European-style, cash-settled, and linear in USD, so premium, PnL, and settlement are all in dollars.
- Portfolio margin is on by default, and options share the same collateral as Futures, with 30+ currencies accepted.
- Options trade through request for quote (RFQ), with up to five legs per trade, and clients complete a questionnaire to unlock options.
Futures give you one dimension: price. Options give you three: price, volatility, and time. Eligible clients in the EEA can now use all three on Kraken Pro, with BTC and ETH options available from the same Derivatives account they already use for Futures.
Options let you express a view on how far the market might move, how quickly, or whether it moves at all, not only which way. Used well, they can help you hedge existing exposure or trade a move without having to pick a direction. They also carry risk, so this guide explains how they work on Kraken Pro.
Why options, and why now
Europe is a core focus for us, and our MiFID license is a big part of why options are launching here. It lets us offer options to EEA clients on a regulated venue.
What we think matters most about this launch is the setup, not the instrument. You get one wallet* across Spot, Futures, and options, the same collateral, portfolio margin on by default, and USD settlement.
What you can trade
- Markets: BTC (XBT/USD) and ETH (ETH/USD) options, traded on Kraken Pro from your existing Derivatives account.
- Style: European-style and cash-settled.
- Expiries: weekly, monthly, quarterly, and semi-annual.
- Settlement: linear and settled in USD, so premium, PnL, and settlement are all in dollars. Collateral isn’t limited to USD, and 30+ currencies can be used.
Three dimensions, three ways to use them
Here are three common ways traders use options. They illustrate how the instruments work and are not recommendations.
- Trade the move, not the direction. A straddle combines a call and a put, so it can benefit from a large move in either direction. It can lose value if the market moves less than the combined premium priced into the position.
- Hedge your BTC without selling it. Buying a put can help offset a fall in the value of BTC you hold, while you keep holding it. A put has a cost, and it doesn’t remove market risk entirely.
- Take a directional view with a defined maximum loss. Buying a call or a put, or building a spread, lets you express a view on direction with a maximum loss that’s known when you open the position.
How margin works
Margining is the part of options that’s most often misunderstood, so here’s how it works on Kraken Pro:
- Futures-style margining. Premium isn’t paid upfront, and PnL marks to market against your collateral.
- Portfolio margin on by default. Offsetting positions reduce the margin you need.
- No funding on options. Perpetual contracts in the same account still accrue funding.
- Sealed-offer auction. If a portfolio becomes distressed, it goes through a sealed-offer auction rather than order book liquidation.
How trading works
Options on Kraken Pro trade through RFQ. Build your trade with up to five legs, submit it, and review the time-limited quotes you receive. You can accept a quote or pass, but acceptance is binding.
How to get started
Options are available on Kraken Pro, on web and mobile, from your existing Derivatives account in the EEA countries where we offer Derivatives. You’ll use the same account and collateral as your Futures, and you don’t need a new wallet.
*Digital assets are held in custody by Payward Europe Solutions Limited (PESL), your MiCA custodian, while financial instruments are provided by PEDSL-CY, your MiFID broker. Each entity acts solely within its own regulatory permissions, and no joint service or cross-entity responsibility is implied.
Investment services, ancillary services and investment activities (the “Services”) in relation to options are provided and carried out by Payward Europe Digital Solutions (CY) Limited (ex I.F. Greenfields Wealth Ltd) (“PEDSL-CY”). PEDSL-CY is authorised and approved by the Cyprus Securities and Exchange Commission (CySEC) for the provision of the Services. See Risk Disclosures here. PEDSL-CY is authorised and regulated by CySEC with licence number 342/17. PEDSL-CY is registered in Cyprus with registered number HE 356603 and registered office at Athalassas, 62, MEZZANINE, Strovolos 2012, Nicosia, Cyprus.
Options are complex instruments and are not appropriate for all investors. You must complete an appropriateness assessment before you can trade options. The value of an option can change rapidly with the price of the underlying, its volatility and the time remaining to expiry. If you buy an option, you can lose the full value of your position. If you sell an option, your losses can substantially exceed the margin you have posted and may be unlimited. Margin requirements can change at any time, and your positions may be liquidated if your account falls below its margin requirement. A Key Information Document is available for each option here.
These materials are for general information purposes only and are not investment or financial product advice or a recommendation or solicitation to buy or sell financial instruments or to engage in any specific trading strategy. The unpredictable nature of the crypto-asset derivatives markets can lead to loss of funds. The value of an investment may go down as well as up, and past performance is not a reliable indicator of future results. Tax may be payable on any return and/or on any increase in the value of your investment and you should seek independent advice on your taxation position. Geographic restrictions may apply. See Risk Disclosures here.
