Kraken Launches Bitcoin and Ethereum Options for European Investors

Kraken has made Bitcoin and Ethereum options contracts available to eligible users within the European Economic Area. This new feature is integrated into existing derivatives accounts on both the web and mobile platforms.

These contracts are financially settled in US dollars. The system allows premiums and results to be calculated in the American currency even when the collateral used is another currency accepted by the exchange.

The model utilizes shared margin with futures positions already held by the client. Portfolio margin is activated automatically to allow opposing positions to reduce the total amount required as collateral.

The options feature maturities ranging from weekly and monthly to quarterly and semi-annually. The execution system works through request-for-quote processes where users can build strategies with up to five components before confirming the trade.

The company emphasizes that the use of leverage increases both potential gains and losses. Investors must undergo an appropriateness assessment before they can begin trading in the derivatives environment.