Crypto Futures Test

1. Why is emotional discipline important in crypto futures?

It removes funding fees It prevents price movement It guarantees every trade wins Fast price movement and leverage can cause emotional mistakes

2. What does going long mean in crypto futures?

Buying spot only Closing an exchange account Buying a contract expecting the crypto price to rise Selling a contract expecting price to fall

3. Why should traders monitor both volume and open interest?

They remove leverage risk They guarantee profits They prevent liquidation They help show participation, liquidity, and market activity

4. What is cross margin?

A crypto tax form A blockchain confirmation Margin limited to only one position Margin shared across the account to support open positions

5. What is a stop-loss order?

A wallet backup A guaranteed profit order An order designed to limit losses if price moves against the trade A staking deposit

6. Why is position sizing important in crypto futures?

It makes funding free It removes liquidation risk completely It guarantees profits It controls risk and helps avoid large losses

7. Why are highly liquid contracts preferred?

They usually have tighter spreads and better execution They remove liquidation risk They eliminate funding rates They guarantee profits

8. What is reduce-only order?

An order that only reduces or closes an existing position A wallet security tool An order that opens a new position only An order that increases leverage

9. What is liquidation in crypto futures?

When spot crypto is transferred When a trader receives a dividend When Bitcoin is mined When the exchange automatically closes a position because losses are too high

10. Why are perpetual futures popular in crypto?

They allow traders to hold long or short positions without a set expiration They require no margin They remove all risk They guarantee profit

11. What is open interest in crypto futures?

The number of wallets created The amount of spot crypto owned The total number of open contracts in the market The number of exchange employees

12. What is isolated margin?

A wallet stored offline Margin limited to one specific position A staking method Margin shared across all positions

13. If a trader uses 10x leverage, what does that mean?

$1,000 can control about $10,000 of exposure $1,000 becomes guaranteed profit Risk disappears The exchange pays the trader 10% daily

14. What is realized P&L?

Profit on an open position only A wallet balance before trading A staking reward Profit or loss after a position is closed

15. Can crypto futures traders profit when prices fall?

Only miners can profit Yes, by shorting Only spot traders can profit No, crypto only goes up

16. What is the best description of crypto futures trading?

The same as holding spot crypto A guaranteed way to double money A high-risk leveraged market requiring education, risk control, and discipline A risk-free income method

17. What is revenge trading?

Taking profit at a planned target Using a trading journal Trading emotionally after a loss to try to win money back quickly Reducing risk

18. What is a limit order in crypto futures?

An order that guarantees a winning trade An order to buy or sell at a specific price or better A blockchain transfer A liquidation notice

19. What are crypto futures?

Bank savings accounts Stock dividends Contracts that allow traders to speculate on crypto prices without owning the actual crypto Physical Bitcoin coins

20. Who pays funding when the funding rate is negative?

Longs always pay shorts No one pays Shorts usually pay longs The exchange pays everyone

21. What is the mark price?

A guaranteed entry price A fair price used by exchanges to help calculate liquidation A dividend amount A trader’s chosen nickname

22. What is unrealized P&L?

A blockchain fee A tax refund Profit or loss on an open position that has not been closed Profit already withdrawn only

23. Why should futures traders avoid risking too much on one trade?

It lowers exchange fees It removes volatility It guarantees higher returns A single bad trade can cause major losses or liquidation

24. What is a trailing stop?

A fixed wallet password A stop order that moves with price to protect profit A staking period A funding fee

25. What is position size?

The number of exchanges used A blockchain fee The total size of the trade exposure A seed phrase length