Kraken unleashes 20x bitcoin leverage: What traders need to know

00:00 Speaker A

Speaking of people wanting to offer everything, we have our friends over at Kraken now offering 20 X Bitcoin margin.

00:10 Speaker A

So I'm old enough to remember when exchange in the United States could only offer 5X perpetual offerings. Now, I did not know

00:19 Speaker A

I didn't know and I looked this up that in May, Kraken announced 100 X leverage on Bitcoin and Ethereum perpetuals.

00:27 Speaker A

So on perps, on Kraken, you can get 100 X leverage, meaning that if Bitcoin moves 1%, you get liquidated, which is a good time because that happened probably since I started saying that sentence.

00:36 Speaker A

Right? and it's even worse on ETH and and altcoins obviously. So I didn't know that they were able to actually do that.

00:43 Speaker A

So this 20 X on Kraken Pro is actually for spot Bitcoin USD exposure, meaning that you like, you know, margin on a stock account, you can get 20 X leverage.

00:54 Speaker A

So, you know, you got 5,000 bucks, you can now control a $100,000 position. But listen,

01:00 Speaker A

you know, this is that same thing like that means at 20 X a 5% move on Bitcoin gets you liquidated.

01:09 Speaker A

You're gone. Your money is gone, right? An unlevered investor can survive a large decline.