diff --git a/freqtrade/exchange/binance.py b/freqtrade/exchange/binance.py
index 178fa49da..4315585b6 100644
--- a/freqtrade/exchange/binance.py
+++ b/freqtrade/exchange/binance.py
@@ -153,17 +153,20 @@ class Binance(Exchange):
         return max_lev
 
     @retrier
-    def _set_leverage(self, leverage: float, pair: Optional[str]):
+    def _set_leverage(
+        self,
+        leverage: float,
+        pair: Optional[str],
+        trading_mode: Optional[TradingMode]
+    ):
         """
             Set's the leverage before making a trade, in order to not
             have the same leverage on every trade
         """
-        if not self.exchange_has("setLeverage"):
-            # Some exchanges only support one collateral type
-            return
+        trading_mode = trading_mode or self.trading_mode
 
         try:
-            if self.trading_mode == TradingMode.FUTURES:
+            if trading_mode == TradingMode.FUTURES:
                 self._api.set_leverage(symbol=pair, leverage=leverage)
         except ccxt.DDoSProtection as e:
             raise DDosProtection(e) from e
diff --git a/freqtrade/exchange/exchange.py b/freqtrade/exchange/exchange.py
index bef8f5e57..dd3304921 100644
--- a/freqtrade/exchange/exchange.py
+++ b/freqtrade/exchange/exchange.py
@@ -778,7 +778,7 @@ class Exchange:
             return dry_order
 
         if self.trading_mode != TradingMode.SPOT:
-            self._set_leverage(pair, leverage)
+            self._set_leverage(leverage, pair)
         params = self._params.copy()
         if time_in_force != 'gtc' and ordertype != 'market':
             param = self._ft_has.get('time_in_force_parameter', '')
@@ -1602,7 +1602,12 @@ class Exchange:
         return 1.0
 
     @retrier
-    def _set_leverage(self, leverage: float, pair: Optional[str]):
+    def _set_leverage(
+        self,
+        leverage: float,
+        pair: Optional[str],
+        trading_mode: Optional[TradingMode]
+    ):
         """
             Set's the leverage before making a trade, in order to not
             have the same leverage on every trade
diff --git a/freqtrade/exchange/kraken.py b/freqtrade/exchange/kraken.py
index 6981204a4..46f1ab934 100644
--- a/freqtrade/exchange/kraken.py
+++ b/freqtrade/exchange/kraken.py
@@ -172,9 +172,17 @@ class Kraken(Exchange):
         """
         return float(max(self._leverage_brackets[pair]))
 
-    def _set_leverage(self, pair, leverage):
+    def _set_leverage(
+        self,
+        leverage: float,
+        pair: Optional[str],
+        trading_mode: Optional[TradingMode]
+    ):
         """
             Kraken set's the leverage as an option in the order object, so we need to
             add it to params
         """
-        self._params['leverage'] = leverage
+        if leverage > 1.0:
+            self._params['leverage'] = leverage
+        else:
+            del self._params['leverage']
diff --git a/tests/exchange/test_exchange.py b/tests/exchange/test_exchange.py
index 939e45d63..3231d9811 100644
--- a/tests/exchange/test_exchange.py
+++ b/tests/exchange/test_exchange.py
@@ -2987,12 +2987,12 @@ def test_apply_leverage_to_stake_amount(
     assert exchange._apply_leverage_to_stake_amount(stake_amount, leverage) == min_stake_with_lev
 
 
-@pytest.mark.parametrize("collateral", [
-    (Collateral.CROSS),
-    (Collateral.ISOLATED)
+@pytest.mark.parametrize("exchange_name,trading_mode", [
+    ("binance", TradingMode.FUTURES),
+    ("ftx", TradingMode.MARGIN),
+    ("ftx", TradingMode.FUTURES)
 ])
-@pytest.mark.parametrize("exchange_name", [("ftx"), ("binance")])
-def test__set_leverage(mocker, default_conf, exchange_name, collateral):
+def test__set_leverage(mocker, default_conf, exchange_name, trading_mode):
 
     api_mock = MagicMock()
     api_mock.set_leverage = MagicMock()
@@ -3006,7 +3006,8 @@ def test__set_leverage(mocker, default_conf, exchange_name, collateral):
         "_set_leverage",
         "set_leverage",
         pair="XRP/USDT",
-        leverage=5.0
+        leverage=5.0,
+        trading_mode=trading_mode
     )
 
 
@@ -3014,8 +3015,7 @@ def test__set_leverage(mocker, default_conf, exchange_name, collateral):
     (Collateral.CROSS),
     (Collateral.ISOLATED)
 ])
-@pytest.mark.parametrize("exchange_name", [("ftx"), ("binance")])
-def test_set_margin_mode(mocker, default_conf, exchange_name, collateral):
+def test_set_margin_mode(mocker, default_conf, collateral):
 
     api_mock = MagicMock()
     api_mock.set_margin_mode = MagicMock()
@@ -3025,7 +3025,7 @@ def test_set_margin_mode(mocker, default_conf, exchange_name, collateral):
         mocker,
         default_conf,
         api_mock,
-        exchange_name,
+        "binance",
         "set_margin_mode",
         "set_margin_mode",
         pair="XRP/USDT",
diff --git a/tests/exchange/test_kraken.py b/tests/exchange/test_kraken.py
index 74a06c96c..1a712fd3f 100644
--- a/tests/exchange/test_kraken.py
+++ b/tests/exchange/test_kraken.py
@@ -305,3 +305,9 @@ def test_fill_leverage_brackets_kraken(default_conf, mocker):
         'XLTCUSDT': [1],
         'LTC/ETH': [1]
     }
+
+
+def test_kraken__set_leverage(default_conf, mocker):
+    exchange = get_patched_exchange(mocker, default_conf, id="kraken")
+    exchange._set_leverage(3)
+    assert exchange.params['leverage'] == 3