Bitcoin Futures

8 min readarticleIncludes quiz · 3 questions

Futures are contracts to buy/sell Bitcoin at a later time or with no expiry (perpetuals). They allow leverage but add liquidation risk.

Simple definitions:

  • Leverage: Borrowing to control a bigger position.
  • Margin: Collateral you post to open/keep a position.
  • Funding rate: Periodic payment longs/shorts pay on perpetuals to keep price near spot.
  • Liquidation: Forced close when margin is too low.

Test Your Knowledge

This lesson includes a 3-question quiz (passing score: 75%).

Quiz functionality available in the mobile app.