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 should futures traders avoid risking too much on one trade? It removes volatility It lowers exchange fees It guarantees higher returns A single bad trade can cause major losses or liquidation 2. Which is generally riskier? No position Low leverage Using a demo account High leverage 3. Why are highly liquid contracts preferred? They eliminate funding rates They usually have tighter spreads and better execution They remove liquidation risk They guarantee profits 4. If a trader uses 10x leverage, what does that mean? $1,000 can control about $10,000 of exposure The exchange pays the trader 10% daily $1,000 becomes guaranteed profit Risk disappears 5. 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 6. 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 7. 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P&L? A tax refund Profit or loss on an open position that has not been closed A blockchain fee Profit already withdrawn only 8. 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 9. What is the bid-ask spread? A wallet fee A blockchain confirmation The difference between the buying price and selling price A staking reward 10. What is margin in crypto futures? A blockchain wallet address A tax refund Funds used to open and maintain a leveraged position A staking reward 11. Why is leverage risky? It makes trades risk-free It guarantees income It amplifies both gains and losses It removes liquidation risk 12. What is a limit order in crypto futures? A blockchain transfer An order to buy or sell at a specific price or better A liquidation notice An order that guarantees a winning trade 13. What is liquidity in crypto futures? How many passwords are used How cold a wallet is How easily a contract can be bought or sold without major price impact How many social media followers a coin has 14. Why is position sizing important in crypto futures? It guarantees profits It controls risk and helps avoid large losses It makes funding free It removes liquidation risk completely 15. What are crypto futures? Contracts that allow traders to speculate on crypto prices without owning the actual crypto Bank savings accounts Physical Bitcoin coins Stock dividends 16. What does going long mean in crypto futures? Selling a contract expecting price to fall Buying spot only Buying a contract expecting the crypto price to rise Closing an exchange account 17. 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 18. What is a stop-loss order? A staking deposit An order designed to limit losses if price moves against the trade A wallet backup A guaranteed profit order 19. What is reduce-only order? A wallet security tool An order that only reduces or closes an existing position An order that increases leverage An order that opens a new position only 20. What is the main difference between spot crypto and crypto futures? Spot uses leverage only There is no difference Spot means owning crypto; futures means trading a contract Futures means owning physical Bitcoin 21. Why is emotional discipline important in crypto futures? Fast price movement and leverage can cause emotional mistakes It removes funding fees It guarantees every trade wins It prevents price movement 22. Who pays funding when the funding rate is positive? Shorts always pay longs The government pays traders No one pays Longs usually pay shorts 23. 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 24. Why should traders pay attention to funding rates? Funding can affect the cost of holding a position Funding guarantees profit Funding replaces stop losses Funding removes liquidation risk 25. Which margin mode can risk more of the account balance? No margin Cold wallet margin Cross margin Isolated margin Submit Test
