Crypto Futures Test

1. 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

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

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

3. Why is liquidation dangerous?

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

4. Why is position sizing important in crypto futures?

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

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

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

6. What is realized P&L?

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

7. What can rising open interest suggest?

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

8. What is leverage in crypto futures?

A blockchain gas fee A crypto wallet password A guaranteed profit tool Using borrowed exposure to control a larger position with less capital

9. What is the last price?

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

10. What does going long mean in crypto futures?

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

11. Why is leverage risky?

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

12. What is trading volume?

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

13. What is the best description of crypto futures trading?

The same as holding spot crypto A guaranteed way to double money A high-risk leveraged market requiring education, risk control, and discipline A risk-free income method

14. What is a perpetual futures contract?

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

15. Why are highly liquid contracts preferred?

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

16. Why should traders monitor both volume and open interest?

They help show participation, liquidity, and market activity They prevent liquidation They remove leverage risk They guarantee profits

17. What is unrealized P&L?

Profit or loss on an open position that has not been closed A blockchain fee A tax refund Profit already withdrawn only

18. Why do exchanges use mark price?

To make leverage risk-free To guarantee trader profits To remove trading fees To reduce manipulation and unfair liquidation from sudden price spikes

19. Why are crypto futures considered high risk?

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

20. What is a take-profit order?

A liquidation warning A blockchain confirmation A tax payment An order designed to close a position at a target profit

21. What is a stop-loss order?

A staking deposit A guaranteed profit order An order designed to limit losses if price moves against the trade A wallet backup

22. What is the bid-ask spread?

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

23. What is isolated margin?

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

24. Which margin mode can risk more of the account balance?

No margin Cross margin Isolated margin Cold wallet margin

25. Why is emotional discipline important in crypto futures?

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