Crypto Futures Test

1. Why is leverage risky?

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

2. What is open interest in crypto futures?

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

3. Why are highly liquid contracts preferred?

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

4. What does going short mean in crypto futures?

Holding only stablecoins Buying a contract expecting price to rise Mining Bitcoin Selling a contract expecting the crypto price to fall

5. What is revenge trading?

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

6. Can crypto futures traders profit when prices fall?

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

7. What is realized P&L?

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

8. What is the last price?

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

9. What is a perpetual futures contract?

A futures contract with no expiration date A stock certificate A physical crypto wallet A contract that expires every day

10. What is initial margin?

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

11. What is a funding rate?

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

12. What is volatility in crypto futures?

A fixed price forever A guaranteed profit system A wallet setting Large or frequent price movement

13. What is slippage?

A tax refund A guaranteed profit A blockchain wallet When the execution price differs from the expected price

14. Why should traders pay attention to funding rates?

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

15. What is a trailing stop?

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

16. What is a market order in crypto futures?

A staking reward An order that only fills at one exact price A wallet recovery tool An order to buy or sell immediately at the best available price

17. What is maintenance margin?

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

18. Why is emotional discipline important in crypto futures?

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

19. What is a limit order in crypto futures?

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

20. What happens if the market moves against a highly leveraged position?

The exchange refunds losses The position cannot lose money The position can be liquidated quickly The trade becomes risk-free

21. What is isolated margin?

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

22. What is the bid-ask spread?

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

23. What are crypto futures?

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

24. Why are perpetual futures popular in crypto?

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

25. What is the main difference between spot crypto and crypto futures?

There is no difference Futures means owning physical Bitcoin Spot means owning crypto; futures means trading a contract Spot uses leverage only