[ANN] KRAKEN.COM - Exchange with USD EUR GBP JPY CAD BTC LTC XRP NMC XDG STR ETH

[Dargo]

Hi All - we are currently having a technical issue that is affecting all funding services including bitcoin and euro payments. I don't have an ETA for when the issue will be resolved at this time, but I will let you know when I have more information.

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[Dargo]

Hi All - we are currently having a technical issue that is affecting all funding services including bitcoin and euro payments. I don't have an ETA for when the issue will be resolved at this time, but I will let you know when I have more information.

Funding services are back online. We apologize for the inconvenience. Digital currency payments should get resent, but if your payment still appears to be stuck, contact support. Bank payments will not be delayed, except for Fidor-Fidor payments, which should be going through now.

[ICFiedler]

Suggestion:
Please include a "sum" row for open margin positions.

[bahamapascal]

Regarding the leverage trading. Where are the funds coming from for the long/short positions? Can I lend my money in return for interest like on bitfinex? If so how and where?
Thanks!

[KrakenTrader]

Regarding the leverage trading. Where are the funds coming from for the long/short positions? Can I lend my money in return for interest like on bitfinex? If so how and where?
Thanks!

I just had a Live Chat with Kraken Customer Support, and I have learned that Kraken itself is currently providing all liquidity used for margin trading.
They are looking into setting up a P2P lending system similar to bitfinex in the future, although there is no ETA yet.
[Chat screenshot below]



So Kraken is continuing to be moving forward and carefully implementing new services that work, that is good news.
It's by far the best exchange/btc-trading platform on the market today in my opinion.

[bahamapascal]

Regarding the leverage trading. Where are the funds coming from for the long/short positions? Can I lend my money in return for interest like on bitfinex? If so how and where?
Thanks!

I just had a Live Chat with Kraken Customer Support, and I have learned that Kraken itself is currently providing all liquidity used for margin trading.
They are looking into setting up a P2P lending system similar to bitfinex in the future, although there is no ETA yet.
[Chat screenshot below]



So Kraken is continuing to be moving forward and carefully implementing new services that work, that is good news.
It's by far the best exchange/btc-trading platform on the market today in my opinion.

Oh that was very kind of you asking, thanks!

Well would have been nice if we could generate interest. Currently using Bitfinex, but I would rather be using kraken as they have 100% of my trust!

[Dargo]

Suggestion:
Please include a "sum" row for open margin positions.

Thanks for the suggestion - we are planning to do this. For now you can get a simple summary under Trade > Overview, but a summary row for the open positions list is needed.

[Dargo]

Regarding the leverage trading. Where are the funds coming from for the long/short positions? Can I lend my money in return for interest like on bitfinex? If so how and where?
Thanks!

I just had a Live Chat with Kraken Customer Support, and I have learned that Kraken itself is currently providing all liquidity used for margin trading.
They are looking into setting up a P2P lending system similar to bitfinex in the future, although there is no ETA yet.


So Kraken is continuing to be moving forward and carefully implementing new services that work, that is good news.
It's by far the best exchange/btc-trading platform on the market today in my opinion.

Oh that was very kind of you asking, thanks!

Well would have been nice if we could generate interest. Currently using Bitfinex, but I would rather be using kraken as they have 100% of my trust!

Yes, we are providing the liquidity for margin trading right now and looking at the possibility of allowing Kraken clients to loan to other clients. Let me know if there are any other questions about margin trading. Unfortunately bitcointalk was down when we rolled this out, which may have prevented some of you from posting here with your questions.

[ICFiedler]

Suggestion:
Please include a "sum" row for open margin positions.

Thanks for the suggestion - we are planning to do this. For now you can get a simple summary under Trade > Overview, but a summary row for the open positions list is needed.

Thanks! It would also be great to have a column with the date of the opening position or, equally informative, when the margin fee of 0.05% is due. That allows users to optimize the closing of positions.

[ICFiedler]

Yes, we are providing the liquidity for margin trading right now and looking at the possibility of allowing Kraken clients to loan to other clients. Let me know if there are any other questions about margin trading. Unfortunately bitcointalk was down when we rolled this out, which may have prevented some of you from posting here with your questions.

A suggestion how to design a user financed liquidity pool:
(1) Let every user donate their funds to the liquidity pool
(2) Calculate the return of the liquidity pool per hour
(3) Pay each user a share of the profits according to their liquidity share

Example:
The liquidity pool is 1,000BTC and has earned a profit of 0.01BTC in the last hour (0,001%). A user has invested 10BTC (1% of the pool) and thus receives after an hour 0,01BTC*0,01 = 0,0001BTC as a return. If he had only invested half an hour he receives only half of it (0,01BTC*0,01*0,5=0,00005BTC).

This procedure has five main advantages over the lending feature at bitfinex:
(1) There is no need for another market where users have to place orders
(2) Less risky for the lender: Each investment is guaranteed a return, instead of  altering between no return and a higher return (averge should be about the same)
(3) Less risky for the borrower: The cost of borrowing stays constant according to the rules of the liquidity pool
(4) Users can exactly determine how long they lend money and change their mind at any given moment
(5) Autoreinvestments are easy

There are one challenge and one disadvantage to this kind of user financed liquidity pool.
Challenge: kraken needs to fill the liquidity pool in case a larger deinvestment of a user or multiple usesers leads to a temporary liquidity gap.
Disadvantage: Lenders are not able to generate their own conditions but have to take what the pool offers as returns.

I do not think that it is a huge problem for kraken to provide liquidity in case of temporary shortages. And the disadvantage of fixed returns for lenders could be overcome by offering multiple liquidity pools with different rates for the borrowers. For example, there could be a cheap pool which will be used nearly always and other pools of liquidity, which charge more interest and are thus used less often, for example only in volatile times. Users can then have the option in which liquidity pool they invest.

[KrakenTrader]

Regarding the leverage trading. Where are the funds coming from for the long/short positions? Can I lend my money in return for interest like on bitfinex? If so how and where?
Thanks!

I just had a Live Chat with Kraken Customer Support, and I have learned that Kraken itself is currently providing all liquidity used for margin trading.
They are looking into setting up a P2P lending system similar to bitfinex in the future, although there is no ETA yet.


So Kraken is continuing to be moving forward and carefully implementing new services that work, that is good news.
It's by far the best exchange/btc-trading platform on the market today in my opinion.

Oh that was very kind of you asking, thanks!

Well would have been nice if we could generate interest. Currently using Bitfinex, but I would rather be using kraken as they have 100% of my trust!

Yes, we are providing the liquidity for margin trading right now and looking at the possibility of allowing Kraken clients to loan to other clients. Let me know if there are any other questions about margin trading. Unfortunately bitcointalk was down when we rolled this out, which may have prevented some of you from posting here with your questions.

Dargo,

Another feature request:
Display the Type of Order (Normal / Margin) on ORDER PAGE
by including a column called:
      Leverage
with content like:
      'none' '1.25' '1.5'  '2.0' '2.5'  '3.0'

There is currently no way to see in a blink of an eye, whether listed orders are 'none-margin' or 'with-leverage'.
Instead, we have to click each order to get this info.

Thanks for consideration.

[ICFiedler]

Another feature request:
Display the Type of Order (Normal / Margin) on ORDER PAGE
by including a column called:
      Leverage
with content like:
     'none' '1.25' '1.5'  '2.0' '2.5'  '3.0'

There is currently no way to see in a blink of an eye, whether listed orders are 'none-margin' or 'with-leverage'.
Instead, we have to click each order to get this info.

Agreed, that would be benefictial.

Two more simple things:
The "Pair" column could be replaced by a column "Currency A". Since there is already the "Avg. Price" column, it would make the "Pair" column obsolete and give the additional information how much of "currency A" are traded against the "Avg. Price".

The user should be able to set his standard leverage the leverage ratio, that is, whenever he clicks on intermediate or advanced order, he does not need to click on the respective leverage every time. (Currenlty the standard leverage is "none").

[Dargo]

^^ Thanks for the great suggestions ICFielder and KrakenTrader! Some of these things are already planned and the rest we will take under consideration.

[KrakenTrader]

^^ Thanks for the great suggestions ICFielder and KrakenTrader! Some of these things are already planned and the rest we will take under consideration.

Dargo,

- Positions limit exceeded

Usually I do have multiple long OR multiple short positions open.
Today I figured there appears to exist a limit of how many positions can be open at the same time.

In my case, I opened 6 SELL positions, and wanted to open another one.
That wasn't possible. 6 seems to be the limit.
Bug or feature ? Can you imagine of eliminating or at least rising this limit Thanks

[ICFiedler]

^^ Thanks for the great suggestions ICFielder and KrakenTrader! Some of these things are already planned and the rest we will take under consideration.

Dargo,

- Positions limit exceeded

Usually I do have multiple long OR multiple short positions open.
Today I figured there appears to exist a limit of how many positions can be open at the same time.

In my case, I opened 6 SELL positions, and wanted to open another one.
That wasn't possible. 6 seems to be the limit.
Bug or feature ? Can you imagine of eliminating or at least rising this limit Thanks

That is strange. I often had more than 6 positions open. So this should not be the reason, I think.

I rather expect it to be a bug in the calculation of the total exposed margin value. For example, I observed that if I am, let's say, 70 BTC long, have 10BTC open long orders open and 20BTC open short orders. I should then be allowed to open more long and more short orders. However, I am not. Probably because the open orders are both added to the positions instead of only adding the long orders (since short orders would reduce my position). I mentioned that in a ticket already, but got no reply, yet.

[Dargo]

^^ Thanks for the great suggestions ICFielder and KrakenTrader! Some of these things are already planned and the rest we will take under consideration.

Dargo,

- Positions limit exceeded

Usually I do have multiple long OR multiple short positions open.
Today I figured there appears to exist a limit of how many positions can be open at the same time.

In my case, I opened 6 SELL positions, and wanted to open another one.
That wasn't possible. 6 seems to be the limit.
Bug or feature ? Can you imagine of eliminating or at least rising this limit Thanks

That is strange. I often had more than 6 positions open. So this should not be the reason, I think.

I rather expect it to be a bug in the calculation of the total exposed margin value. For example, I observed that if I am, let's say, 70 BTC long, have 10BTC open long orders open and 20BTC open short orders. I should then be allowed to open more long and more short orders. However, I am not. Probably because the open orders are both added to the positions instead of only adding the long orders (since short orders would reduce my position). I mentioned that in a ticket already, but got no reply, yet.

We are looking into both of these issues and I'll let you know when I have more information.

[Dargo]

^^ Thanks for the great suggestions ICFielder and KrakenTrader! Some of these things are already planned and the rest we will take under consideration.

Dargo,

- Positions limit exceeded

Usually I do have multiple long OR multiple short positions open.
Today I figured there appears to exist a limit of how many positions can be open at the same time.

In my case, I opened 6 SELL positions, and wanted to open another one.
That wasn't possible. 6 seems to be the limit.
Bug or feature ? Can you imagine of eliminating or at least rising this limit Thanks

That is strange. I often had more than 6 positions open. So this should not be the reason, I think.

There is a limit to the # of positions, but it's a limit on the # of trade positions. Probably the 6 you were looking at are order positions, which are only a way of consolidating trade positions to see the overall result of an order. The limit on trade positions is 35, but we are going to bump up this number so hopefully it won't be an issue. We need a limit of some kind to help conserve system resources, but the 35 limit was too low. I'm not sure yet what it will be bumped to.  

I rather expect it to be a bug in the calculation of the total exposed margin value. For example, I observed that if I am, let's say, 70 BTC long, have 10BTC open long orders open and 20BTC open short orders. I should then be allowed to open more long and more short orders. However, I am not. Probably because the open orders are both added to the positions instead of only adding the long orders (since short orders would reduce my position). I mentioned that in a ticket already, but got no reply, yet.

In the situation you describe, you should be able to add up to 20 BTC more in long orders *if* your borrow limit is 100 BTC for long positions. But the current borrow limits are

• Tier 3: 10,000 EUR and 50 BTC
• Tier 4: 20,000 EUR and 100 BTC

Note that when you go long you are borrowing EUR and your limit is the EUR limit. When you go short you are borrowing BTC and your limit is the BTC limit. So at Tier 4 you can borrow up to 20K EUR to go long or up to 100 BTC to go short. Keep in mind that these are just the current borrow limits and are subject to change. We are going to check though to make sure short orders are not adding to your long limit (or long orders adding to your short limit). Thanks again for the feedback!

[ICFiedler]

We are going to check though to make sure short orders are not adding to your long limit (or long orders adding to your short limit). Thanks again for the feedback!

I observed this a little longer and it might not be that long positions add to short limits and vice versa. It rather seems that they are independent. But that is also not correct.

Example:
I am 20BTC long and this is my maximum leverage (to make it simple: in both directions). I then shopuld be able to put a 40BTC short order -- 20BTC to cancel my position and 20BTC for my new position. However, it seems I can only put a 20BTC short order, because the long position is not taken into account.

[bahamapascal]

Hey Drago, I yet have another question.

When I go long or short can I in any case get into depts ? Or will potential losses be covered by kraken?
Thanks!

[Dargo]

We are going to check though to make sure short orders are not adding to your long limit (or long orders adding to your short limit). Thanks again for the feedback!

I observed this a little longer and it might not be that long positions add to short limits and vice versa. It rather seems that they are independent. But that is also not correct.

Example:
I am 20BTC long and this is my maximum leverage (to make it simple: in both directions). I then shopuld be able to put a 40BTC short order -- 20BTC to cancel my position and 20BTC for my new position. However, it seems I can only put a 20BTC short order, because the long position is not taken into account.

So far we haven't been able to reproduce this issue. What error message are you seeing - is it the "Margin allowance exceeded" message, or something else?