Kraken Pro Announces XRP Margin Trading Against Ethereum

Kraken Pro, the advanced trading platform of crypto exchange Kraken, has announced that XRP is now available for margin trading against Ethereum (ETH).

The list of XRP pairs that are available for margin trading also includes XRP/EUR, XRP/BTC, XRP/CAD, and others.

How Margin Trading Works

Margin trading makes it possible for traders to open larger positions by relying on borrowed funds.

The new pair allows betting on XRP increasing in price against the flagship altcoin. Traders can borrow funds in order to go long on XRP. Conversely, they can also short the pair if they believe that ETH will outperform the Ripple-linked token.

Kraken allows users to trade with up to 5x leverage for most pairs; however, leverage is capped at 3x for XRP/ETH. Leverage limits vary due to factors such as liquidity and market volatility. For instance, if a user deposits 5 ETH as collateral, they can potentially open a position of up to 15 ETH.

Kraken first rolled out margin trading back in 2015 with the BTC/EUR pair.

Will ETH Outperform XRP This Year?

The ETH/XRP pair has plunged by more than 14% since its peak of 0.00096 ETH on July 22. Over the past week, ETH is up by 1.9% while XRP is down by 10.6%.

XRP had been gaining ground against ETH since November, peaking at 0.0114 ETH in April during a severe sell-off for ETH. However, the flagship altcoin has rebounded, supported by Joseph Lubin’s SharpLink, which is promoting corporate adoption.