Crypto Futures Test Crypto Futures Trading Knowledge Test Instructions: Answer all 25 questions. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. Why are highly liquid contracts preferred? They guarantee profits They usually have tighter spreads and better execution They eliminate funding rates They remove liquidation risk 2. What is a market order in crypto futures? An order to buy or sell immediately at the best available price A wallet recovery tool An order that only fills at one exact price A staking reward 3. What is unrealized P&L? A tax refund A blockchain fee Profit or loss on an open position that has not been closed Profit already withdrawn only 4. What are crypto futures? Stock dividends Bank savings accounts Physical Bitcoin coins Contracts that allow traders to speculate on crypto prices without owning the actual crypto 5. What is liquidity in crypto futures? How many passwords are used How many social media followers a coin has How cold a wallet is How easily a contract can be bought or sold without major price impact 6. Why do perpetual futures use funding rates? To keep futures prices aligned with spot market prices To guarantee profits To replace margin To eliminate volatility 7. What can rising open interest suggest? Guaranteed price increase More money or participation entering the futures market Guaranteed price decrease No market activity 8. What is liquidation in crypto futures? When the exchange automatically closes a position because losses are too high When a trader receives a dividend When Bitcoin is mined When spot crypto is transferred 9. What is trading volume? The number of wallets created A funding payment The number of contracts traded during a period The exchange’s profit only 10. Why is position sizing important in crypto futures? It controls risk and helps avoid large losses It removes liquidation risk completely It guarantees profits It makes funding free 11. What is reduce-only order? An order that only reduces or closes an existing position An order that increases leverage A wallet security tool An order that opens a new position only 12. Can crypto futures traders profit when prices fall? Yes, by shorting Only spot traders can profit Only miners can profit No, crypto only goes up 13. What is margin in crypto futures? A tax refund Funds used to open and maintain a leveraged position A blockchain wallet address A staking reward 14. What is maintenance margin? A guaranteed profit level A crypto mining fee A tax document The minimum margin required to keep a position open 15. Why should traders monitor both volume and open interest? They prevent liquidation They help show participation, liquidity, and market activity They remove leverage risk They guarantee profits 16. What is slippage? When the execution price differs from the expected price A guaranteed profit A tax refund A blockchain wallet 17. What is realized P&L? Profit on an open position only A staking reward A wallet balance before trading Profit or loss after a position is closed 18. Which is generally riskier? Low leverage High leverage Using a demo account No position 19. What is the mark price? A fair price used by exchanges to help calculate liquidation A dividend amount A guaranteed entry price A trader’s chosen nickname 20. What is volatility in crypto futures? A wallet setting A guaranteed profit system Large or frequent price movement A fixed price forever 21. Why should traders pay attention to funding rates? Funding removes liquidation risk Funding can affect the cost of holding a position Funding replaces stop losses Funding guarantees profit 22. What is a perpetual futures contract? A futures contract with no expiration date A physical crypto wallet A stock certificate A contract that expires every day 23. What is a take-profit order? A tax payment A liquidation warning A blockchain confirmation An order designed to close a position at a target profit 24. What happens if the market moves against a highly leveraged position? The exchange refunds losses The position can be liquidated quickly The trade becomes risk-free The position cannot lose money 25. Why are crypto futures considered high risk? They guarantee income They have no fees They never move They combine crypto volatility with leverage Submit Test
