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. Who pays funding when the funding rate is negative? No one pays The exchange pays everyone Shorts usually pay longs Longs always pay shorts 2. If a trader uses 10x leverage, what does that mean? Risk disappears $1,000 can control about $10,000 of exposure $1,000 becomes guaranteed profit The exchange pays the trader 10% daily 3. What is volatility in crypto futures? A guaranteed profit system A fixed price forever A wallet setting Large or frequent price movement 4. Which is generally riskier? No position Using a demo account Low leverage High leverage 5. What is maintenance margin? A crypto mining fee A tax document The minimum margin required to keep a position open A guaranteed profit level 6. What is the mark price? A dividend amount A guaranteed entry price A fair price used by exchanges to help calculate liquidation A trader’s chosen nickname 7. Why should traders pay attention to funding rates? Funding can affect the cost of holding a position Funding replaces stop losses Funding guarantees profit Funding removes liquidation risk 8. What is liquidation in crypto futures? When the exchange automatically closes a position because losses are too high When spot crypto is transferred When a trader receives a dividend When Bitcoin is mined 9. What is a trailing stop? A stop order that moves with price to protect profit A fixed wallet password A funding fee A staking period 10. Why are perpetual futures popular in crypto? They require no margin They remove all risk They allow traders to hold long or short positions without a set expiration They guarantee profit 11. What is a limit order in crypto futures? A blockchain transfer A liquidation notice An order to buy or sell at a specific price or better An order that guarantees a winning trade 12. What is the bid-ask spread? A blockchain confirmation The difference between the buying price and selling price A staking reward A wallet fee 13. What is isolated margin? A wallet stored offline Margin limited to one specific position Margin shared across all positions A staking method 14. What is slippage? A tax refund When the execution price differs from the expected price A blockchain wallet A guaranteed profit 15. Why is leverage risky? It removes liquidation risk It amplifies both gains and losses It guarantees income It makes trades risk-free 16. What is margin in crypto futures? Funds used to open and maintain a leveraged position A blockchain wallet address A staking reward A tax refund 17. What does going short mean in crypto futures? Selling a contract expecting the crypto price to fall Mining Bitcoin Holding only stablecoins Buying a contract expecting price to rise 18. What is a funding rate? A bank loan rate only A fixed tax rate A staking reward always paid by the exchange A periodic payment between long and short traders in perpetual futures 19. What does going long mean in crypto futures? Buying a contract expecting the crypto price to rise Selling a contract expecting price to fall Buying spot only Closing an exchange account 20. What is leverage in crypto futures? A guaranteed profit tool A crypto wallet password Using borrowed exposure to control a larger position with less capital A blockchain gas fee 21. What is contract size in crypto futures? A mining difficulty level A tax bracket The size of a wallet seed phrase The amount of crypto exposure represented by a contract 22. What is unrealized P&L? A tax refund Profit or loss on an open position that has not been closed A blockchain fee Profit already withdrawn only 23. What happens if the market moves against a highly leveraged position? The trade becomes risk-free The position can be liquidated quickly The position cannot lose money The exchange refunds losses 24. What is cross margin? Margin shared across the account to support open positions A blockchain confirmation A crypto tax form Margin limited to only one position 25. Why should futures traders avoid risking too much on one trade? It removes volatility A single bad trade can cause major losses or liquidation It guarantees higher returns It lowers exchange fees Submit Test