KRAKEN LEVERAGE - Money missing. Help plz

[Anna.Tsolidoy]

Hello guys,

I need some advice.

I bought BTC in Kraken with Leverage 5:1 last September. (1 BTC = 3600 Euro)

I closed the position 10 days ago (1 BTC = 9300 euro)

total BTC bought 0.16 @ 3600 euros with 5:1 leverage
total closed position 0.092 @ 9200 euros with 5:1 leverage ( total money in my account before closing position, 20 euros, total money after closing 542 euros.


about bitcoin i had two open positions with leverage 5:1
0,1btc & 0,06btc

Before selling 0,01 btc, I had in my account about 22 euros.

I sold 0,01 btc with leverage 5:1

It shows in the screen shot that I get 93 euros, but I only received around 50 euros.


Then i am trying to close 0,05btc by selling 0,05btc with leverage 5:1
and at that point the things really START TO GO VERY WRONG FROM KRAKEN SIDE. First the site crashed, when i reload the site the order was not placed so i have to put it again. After the second attempt succeeded, 2 trade orders appeared so i instantly cancelled one! (as you see in my ss below, the order appeared as cancelled)

Issues:
1. I didn't want to sell all my position, but the site crashed and it doubled the sell I was doing.
2. When it finally sold, I didn't get the supposed amount I was supposed to get.

I contacted Kraken Support and here is how the convo went:

ME: If I sold 0.092 @ =~9200 Euros, I should have in my balance 846 euros. but right now I only have 542.27 euros. missing=~304.13 euros EVEN without leverage. and before all the transaction, I had about 22 euros in my account.
Plus I bought this with leverage 5:1 , I do not see where is the profit from the leverage.

Kraken support: You have already closed a 341 EUR profit. The current open position is + 522 EUR. Once you close this position, any profir or loss would be added to your account.

Leverage is not a multiplier for your profit. You cannot simply take your PnL and multiply is by 5X. Leverage is only a way to put on a larger position than your account balance would normally allow.

Everything is in order


ME: just to clear things up, it says that I have closed 0.091909, that time BTC to Euro is @ 9200. shouldn't I receive at least 845.56 euros in my account? right now I only have 542.27 euros and i had around 20 before I started closing positions. I don't get where the almost 300 euros have gone. I have checked the fees and they are less than 5 euros.
If you like, you can even use team viewer to see my portfolio, or we could speak will be helpful.

Kraken Support: As of now the positions look ok but the way that they are reported is very confusing. Because of how they are being reported I would recommend waiting until you close the current XBT position and then recalculating. I assure you that we will take a closer look at that point to make sure that it resolves correctly. I do believe that once the current position is eventually closed, everything will line up.


ME: without leverage:
0.091909 BTC @ 9200 euros = ~ 845.56
so I should have this amount at least. and I only have 520 euros in my account and I had 20 to begin with.

Kraken Support: We will keep looking into it. Thanks again for your patience.



and they marked my ticket that they are waiting for my reply.


As we know, the prices are quickly rising and it has been 10 days since I closed my position. Money is missing from my account from jus the change in BTC price and they haven't explained to me why
I didn't get anything fromn the leverage.

In their video, they said that 5:1 gives me 5 times my buying power. This means that if BTC goes up I should get the difference if I choose to sell,  and if the BTC price goes down, I would need to pay the site 5 times my original position, right?

Maybe you guys can also advise me what to do or maybe explain to me clear on how the leverage works, maybe I am wrong on how I understood it.
I attach 2 photos from my account to help you understand better


and from my history



Also, can I ask, @ 1BTC = 3600 euros. I bought 0.16 btc with 572.4 euros with 5:1 leverage, should I have 0.16BTC or 0.8 BTC in my position?





Now the price of btc is around 14000euro so i need instant actions, i am sure you understand.

thanks in advace

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[Anna.Tsolidoy]

can anyone help here with his knowldge?

[Daemon_Hell]

can anyone help here with his knowldge?

Did you saw this: https://support.kraken.com/hc/en-us/articles/206161568-What-are-the-fees-for-margin-trading- ?
I'm not sure when kraken charges this fee, but I guess you can figure it out by checking ledger.
Keep in mind that in most cases marging fee is calculated from full amount.

[Anna.Tsolidoy]

I saw that, but it is impossible to be thousands of euros for margin trade fees. (given I started with aroud 500 euros)

Have you ever tried in kraken to trade with leverage?

The question is like this:
What does leverage 5:1 mean in kraken?
You buy 5 times more crypto with your money? Or you spend 1/5 money for the same amout of cryptos?

i bought with leverage 5:1. 1btc=3600 euros
when i closed position 1btc=9200 euros
and I get less money than what I spent and I am not getting the 5 times buying power that they are saying.

Can anyone help me on this please? or have anyone had this experience with Kraken before?

[Daemon_Hell]

I saw that, but it is impossible to be thousands of euros for margin trade fees. (given I started with aroud 500 euros)

Have you ever tried in kraken to trade with leverage?

The question is like this:
What does leverage 5:1 mean in kraken?
You buy 5 times more crypto with your money? Or you spend 1/5 money for the same amout of cryptos?

i bought with leverage 5:1. 1btc=3600 euros
when i closed position 1btc=9200 euros
and I get less money than what I spent and I am not getting the 5 times buying power that they are saying.

Can anyone help me on this please? or have anyone had this experience with Kraken before?

I did not traded with leverage on kraken, but did a lot of all sorts of trading on regular exchanges.
If you started with 500 euros and then leveraged 5 times - that would get you 2500 euros position amount.
0.01% each 4 hours gives us approx 21.9% per year.
This gives us 547,5 fee (also keep in mind that kraken probably calculates fee amount every 4 hours, so if more your position worth - more you pay)

[Anna.Tsolidoy]

thing is, they did not give me 2500 euros position amount. i bought with leverage, and they charged me 1:1. So they failed in giving me the leverage. and now they are giving me a run around postponing or maybe thinking of not giving me the money I am supposed to receive.
for the fees, they deduct it from my account instantly every four hours so I have them in record. and the maths in my account and what money I received by closing the position does not add up.

[heliben]

I am pretty sure that kraken leverage works differently. if you have 500 euro in your account and want a 2500 euro position with 5:1 leverage you have to actually put in an order for 2500 euro worth of bit oin and select 5:1.

if you put an order for 500 euro worth of bitcoin, that is the position you will receive. If you select leverage 5:1 with it, it means that only 100 euro from your account is used as margin for this position.

[Anna.Tsolidoy]

Update: I closed all my positions.
So I got my money 600 euros less.
So when I opened my positions, they deducted the money from my account. then now after selling, they are deducting the same amount of money when I bought.
I paid 572 euros to open my positions, I just sold them today and I noticed almost 600 euros missing. I talked to the agent, and told me that they deducted 572 euros again.
Can anyone explain to me how is that possible? Charging me to buy, and charging me same amount of money when i sold my positions!
First the leverage system did not work. and now they took from me twice amount of money of how much I bought it.

take note, I bought with them btc@ 3600
I sold btc@9200 and btc@15400
 I bought 0.16 btc, thinking with leverage it should be 0.8
now they say i just have 0.16, and then taking the 600 euros twice! WTF Kraken!