Question 1

What are Crypto Futures?

Accepted Answer

Perpetual futures contracts allow you to trade with leverage without owning the underlying asset: - **Leverage** — trade up to 125× your capital - **Long & Short** — profit from both rising and falling prices - **Funding Rate** — periodic payments between longs and shorts - **Liquidation** — forced closure if margin is insufficient - **No expiry** — perpetual contracts have no settlement date

Question 2

Available Data

Accepted Answer

| Exchange | Contracts | Data | |----------|-----------|------| | Binance Futures | 500+ USDT-margined | OHLCV + OI + Funding Rate + L/S Ratio | | Bybit Perpetual | 500+ USDT-margined | OHLCV + OI + Funding Rate |

Question 3

Futures-Specific Indicators

Accepted Answer

These indicators are **only available with futures instruments**: | Indicator | Description | |-----------|-------------| | **Open Interest** | Total outstanding contracts (dollar value) | | **Funding Rate** | Periodic payment between longs/shorts (8h) | | **Long/Short Ratio** | Ratio of long to short positions | | **Liquidations** | Volume of liquidated positions | > **Important:** If you select a spot instrument but use futures indicators, those conditions will be skipped (always return true).

Question 4

Leverage Configuration

Accepted Answer

| Setting | Range | |---------|-------| | Leverage | 1× to 125× | Leverage amplifies both profits and losses: - 10× leverage + 5% move = 50% account change - 10× leverage + 10% adverse move = 100% loss (liquidation)

Question 5

Commission Presets

Accepted Answer

| Preset | Maker | Taker | |--------|-------|-------| | Binance Futures | 0.02% | 0.04% | | Bybit Perpetual | 0.02% | 0.055% | Futures commissions are typically lower than spot because exchanges earn from funding rates and liquidations.

Question 6

Funding Rate in Backtests

Accepted Answer

Funding rate payments are applied during backtesting: - Paid every 8 hours (00:00, 08:00, 16:00 UTC) - Positive rate: longs pay shorts - Negative rate: shorts pay longs - Can significantly impact strategy performance, especially for long-duration trades

Question 7

Risk Management for Futures

Accepted Answer

Futures trading requires careful risk management: 1. **Always use stop-loss** — leverage makes losses accelerate 2. **Start with low leverage** (2-5×) until strategy is proven 3. **Monitor max drawdown** — a 20% drawdown at 10× is a 200% drawdown on underlying 4. **Account for funding** — holding positions through multiple funding periods costs money > **Tip:** The most common beginner mistake with futures is using too much leverage. 5× leverage with a 3% SL risks only 15% per trade. 50× leverag

Question 8

FAQ

Accepted Answer

**Q: What leverage should I start with?** A: 2-5× for beginners. Increase only after proving the strategy is profitable with low leverage. **Q: How do funding rates affect results?** A: Funding can add or subtract from P&L. In trending markets, contrarian funding positions can be costly. Check the trade log for funding rate impact. **Q: Can I use spot indicators on futures?** A: Yes. All standard indicators (RSI, MACD, SMA, etc.) work on futures data. Futures-specific indicators are an addition,

Question 9