Bitcoin Forum

Hello everyone,
I'm trying to understand the kraken.com trading basics. I read their faq etc and I have understand quite a few new things and yet, others not quite yet.

About positions.

I see "close" and "settle" and some volume percentages to chose from.

Can someone help me understand the difference between close and settle?

I'd appreciate it a lot!
thanks :)

Have you found and read this page on the Kraken website?

https://support.kraken.com/hc/en-us/articles/206141657-Closing-or-Settling-Multiple-Positions

Or do you just need some help understanding?

Yes, I read and re-read it and watched that youtube video (https://www.youtube.com/watch?v=BeKbltL3kCw) but I still cannot quite grasp it, apparently because I know nothing about stock markets.

I have created two positions in order to experiment and understand how all this works.

On for 0,03 and one of 0,025 XBT.

What is the difference going to be if I close them by "close" or "settle" or if I just issue an oposite order?

thanks

I've heard from my friend about kraken.com whether to start trading there are very large capital requirements, whether it really like that, to be honest I never trade there, so I hope if anyone here knows about it can share information about trade kraken.

anybody?

I have made few trades with kraken without encountering any difficulties. They are having 'fool proof' step by step procedures to guide any level of traders. If you know some basics I we can trade with them so easily.

Where you are finding these 'close' and 'settle' options. Could you please share any screen shot ...

but... Trade > Positions

Hi @PurpleDog - I work for Kraken and manage our thread on this board. Ignoring what's going on "under the hood," and ignoring fees for simplicity, here's a functional description of the difference between "close" and "settle" in terms of how you end up in a different place with the two options.

Suppose you used a leveraged buy order to go long 1 BTC @$1000. Now you exit the position @$1200. If you use the "close" option, you will end up with a $200 increase in your USD balance and no increase in your BTC balance compared to your balance before you opened the position. If you instead use the "settle" option, you will end up with a $1000 USD decrease and a 1 BTC increase in your balances. With the settle option you still effectively have a $200 USD profit, because you have effectively purchased 1 BTC at a price of $1000 USD but that coin is currently worth $1200. If BTC price continues to rise after you exit the position, then you are better off holding the BTC. But if BTC price declines after you exit the position, then you are better off locking in the profit in USD. So the choice depends on how you think the market will go or whether you want continued exposure in BTC or in USD after exiting the position. I hope this helps clear things up.

As for the volume percentages, if I'm correct in assuming what you are talking about, that governs how much of your net positions you want to close. So if you are net long 10 BTC, 50% will close 5 BTC of the positions, 100% will close all of the positions, and 200% will close all of the long positions AND open a 10 BTC short (so you are closing the long and flipping to the short side in one trade). Be careful about using this tool though. Double-check that it is doing what you want, because I don't think it handles all situations correctly, especially if you have margin positions going in more than one currency pair.  

Hi, guys

https://www.kraken.com       Fiat transfers (deposit) through banks SEPA are available only to verified users ? ???

min deposit EUR?

Thanks a lot, Dargo, for the very accurate and informative answer.

I have used kraken.com in the meanwhile, and it seems ok. The only drawback is my over poor understanding of the money trading mechanisms, since I had no experience up to now.

But I start to pick it up.