Crypto Futures Test

1. What is initial margin?

A wallet recovery phrase The final profit The amount needed to open a futures position A trading fee only

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

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

3. Why is liquidation dangerous?

It removes risk A trader can lose most or all margin in the position It creates free profit It guarantees a better entry

4. Why should traders pay attention to funding rates?

Funding guarantees profit Funding replaces stop losses Funding removes liquidation risk Funding can affect the cost of holding a position

5. What is liquidation in crypto futures?

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

6. What is cross margin?

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

7. What is trading volume?

A funding payment The exchange’s profit only The number of contracts traded during a period The number of wallets created

8. Why are highly liquid contracts preferred?

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

9. What is a limit order in crypto futures?

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

10. What is position size?

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

11. What is revenge trading?

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

12. Which is generally riskier?

High leverage Using a demo account Low leverage No position

13. What is maintenance margin?

A tax document The minimum margin required to keep a position open A guaranteed profit level A crypto mining fee

14. What is a funding rate?

A periodic payment between long and short traders in perpetual futures A staking reward always paid by the exchange A bank loan rate only A fixed tax rate

15. What is the last price?

A wallet password A funding fee The most recent traded price A guaranteed settlement price

16. What can rising open interest suggest?

More money or participation entering the futures market No market activity Guaranteed price increase Guaranteed price decrease

17. Why is leverage risky?

It amplifies both gains and losses It removes liquidation risk It guarantees income It makes trades risk-free

18. Why are crypto futures considered high risk?

They guarantee income They combine crypto volatility with leverage They have no fees They never move

19. What is realized P&L?

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

20. What is the bid-ask spread?

A blockchain confirmation A wallet fee The difference between the buying price and selling price A staking reward

21. Why is position sizing important in crypto futures?

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

22. What is open interest in crypto futures?

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

23. What does going long mean in crypto futures?

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

24. What is reduce-only order?

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

25. What is overleveraging?

Using too much leverage for account size or risk level Buying spot crypto only Using a cold wallet Using no leverage