Crypto futures guide
Terms with examples and where they appear in KARDVANE.
What is the funding rate?The funding rate is a periodic payment exchanged between long and short holders of perpetual futures contracts. When…What are long and short positions?A long position bets that price will rise: you profit if it rises and lose if it falls. A short position bets that…What is liquidation?Liquidation is when the exchange force-closes a leveraged position because its loss has eaten its margin. Most or…What is leverage?Leverage lets you open a position larger than your margin. With 10x leverage, 100 USDT of margin opens a 1,000 USDT…What are crypto futures?Crypto futures are contracts on a coin's price movement that don't require buying the coin. You can bet on a rise…What is open interest?Open interest (OI) is the total size of all futures contracts that are currently open. If it is rising, new…What is a stop loss?A stop loss is an order that closes your position automatically when price reaches the level you set. It helps limit…What is a short squeeze?A short squeeze happens when price rises on a coin with crowded shorts, and the losing shorts are forced to buy to…What are isolated and cross margin?With isolated margin each position gets its own margin and the loss is at most that margin. With cross margin your…How to calculate position sizePosition size = (capital × risk per trade %) ÷ stop distance %. You first choose the most you are willing to lose on…What is mark price?Mark price is the fair price the exchange calculates from multiple sources. It is used for unrealised profit and…What is the long/short ratio?The long/short ratio shows how much of the market's accounts (or positions) are long and how much are short. Binance…
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