Cryptocurrency exchange Kraken has launched a new derivatives product, introducing simplified perpetual contracts it calls “Kraken Perps.” The contracts, now available in select regions to eligible clients worldwide, allow users to speculate on crypto price movements without owning the underlying asset. “Perps are trading instruments designed to let users speculate on future price movements, up or down, without owning the asset involved,” the exchange explained. The mechanics remain rooted in derivatives trading. To open a position, users fund trades with collateral from their Kraken balance. At launch, USD serves as the supported collateral, with other assets expected to follow. Traders then choose whether to increase or decrease exposure to a chosen cryptocurrency’s price. The exchange said it will roll out educational resources to help users understand the mechanics and risks involved. Still, the choice of sports betting analogies has prompted debate about whether retail clients will fully grasp the leverage and volatility embedded in such instruments. Kraken Perps are reportedly live in select regions for eligible clients, with plans to expand access. The company framed the product not as a call to day-trade, but as another tool for expressing market views and building portfolio strategies. The contracts, now available on Kraken Pro, operate without expiry, distinguishing them from standard FX products that follow set trading hours or maturities. According to Kraken, the mechanics of the FX perps are modeled on its existing crypto perpetual contracts, aiming to provide a familiar trading experience for its user base.