Binance/Crypto Futures allows you to predict the future value of a cryptocurrency (e.g. Bitcoin).
By going long or short on a futures contract, you can participate in market movements and make a profit in futures trading.
For example, a trader who goes long buys a futures contract with the idea that its value will rise in the future.
On the other hand, a trader sells a futures contract to go short, betting that prices will fall in the future.
At Binance Futures, you can go long or short (with leverage) to reduce risk and increase your profits in a volatile market.
Before you can start trading futures, you need to complete the Binance Futures quiz.
In this guide, we will use the desktop version of Binance (binance.com) to access the quiz.
Get started on Binance here: https://www.binance.com/en/register?ref=73583477 or use “73583477” as your reference code.
Note: Use the desktop version of Binance (binance.com) to access this quiz (not the Binance mobile app).
Below are the answers to the Binance Futures quiz.
1. What is the maximum loss that can occur when engaged in futures trading?
Choices:
- Balance of all futures portfolios
- Half of my futures portfolio balance
- I will not lose money
Answer: All futures portfolio balance
2. When the futures balance is liquidated, on what price is it based?
Choices:
- Last price
- Last hour price
- Mark price
Answer: Mark price
3. Are you aware that after the future has been forcibly liquidated, in addition to the loss of the position, an insurance compensation fee will occur (= nominal value of the position * liquidation commission rate), which could reduce the balance of the futures portfolio to zero?
Choices:
- No, I don’t know the calculation of the Insurance Clear Fee.
- Yes, I am aware of the existence and calculation of the Insurance Clear Fee and the risks that can cause the balance to return to zero.
- No, I don’t know if liquidation can cause the balance of the futures portfolio to return to zero.
Answer: Yes, I am aware of the existence and calculation of the Insurance Clear Fee and the risks that can cause the balance to return to zero.
4. There is a maximum number of orders for each future. What action should I take?
Choices:
- Once the maximum quantity limit is reached, the order will fail. An error will be reported. At this time, I should continue to try to place the order with the same amount and blame the Binance platform if the system continues to report errors.
- Once the maximum quantity limit is reached, the order will fail and an error will be reported, but I believe that the order will be successfully placed if I try as many times as possible.
- Once the maximum quantity limit is reached, the order will fail and an error will be reported. At this time, I should divide the order into several smaller quantities.
Answer: Once the maximum quantity limit is reached, the order will fail and an error will be reported. At this time, I should divide the order into several smaller quantities.
5. Which of the following conditions applies when using a stop-market order?
Choices:
- The transaction price must be similar to the trigger price.
- After the activation of the stop-profit and stop-loss price, the transaction will be executed immediately at the market price and the transaction price may not be equal to the trigger price.
- The transaction price must be higher than the trigger price.
Answer: After activating the stop-profit and stop-loss price, the transaction will be executed immediately at the market price and the transaction price may not be equal to the trigger price.
6. Which of the following conditions is correct to use Stop-Limit Order?
Choices:
- After the activation of the stop-profit and stop-loss price, the order will be immediately placed at the limit price, but the limit order may not necessarily be filled because the price has moved away.
- The limit order will be executed after it has been listed.
- The limit order will not run after it has been listed.
Answer: After activating the stop-profit and stop-loss price, the order will be placed immediately at the limit price, but the limit order may not necessarily be filled because the price has moved away.
7. What kind of behavior should I avoid when engaging in futures transactions?
Choices:
- Strict discipline, good stop loss, reasonable profits and losses, including winning or losing at my own risk.
- Learn the basics of futures trading and read related articles on Binance’s website.
- Strong gambling, trading addictions, continuous losses and blaming others.
Answer: Strong gambling, trading addictions, continuous losses and blaming others.
8. To continue trading futures, I have:
Choices:
- I have not yet understood the rules and risks of engaging in futures trading. They are not suitable for futures trading. I should learn a more basic knowledge of futures trading.
- has understood the rules and risks of engaging in futures transactions and I agree that any loss suffered in the transaction is my responsibility regardless of the platform.
- I have not yet understood the rules and risks of engaging in futures trading. They are not suitable for futures trading. But I am convinced that as long as I follow investment advice on the Internet, I can make a profit.
Answer: including the rules and risks of engaging in futures transactions, and I agree that any loss suffered in the transaction is my responsibility regardless of the platform.
9. Due to network delays, system failures and other possible factors that may lead to the suspension or deviation of the execution of the Binance Futures service, Binance will make commercially reasonable efforts to ensure, but not promise, that the Binance Futures service system will function effectively. Binance will not be responsible for the results of the final execution due to the above factors.
Choices:
- all right
- I disagree
Answer: I accept
10. Profit and loss (PnL) in futures are calculated on the basis of:
Choices:
- Futures trading will only make a profit, no loss will incur.
- Unrealized gains and losses, gains and losses of my orders.
- After closing a position, based on the opening price and the closing price to calculate the actual profits and losses.
Answer: After closing a position, based on the opening price and the closing price to calculate the actual profits and losses.
11. When a failure in constant trade occurs, it is necessary:
Choices:
- Repeat the attempts of the original operation.
- Check the network and keep information for customer service.
- Follow the suggestions made by netizens on the Internet or in the group.
Answer: Check the network and retain the information for customer service.
12. Futures fees include:
Choices:
- Like the spot, only transaction fees are required.
- In addition to the order commission, the positions also produce capital expenditures and liquidation expenses.
- Like P2P, only transaction fees are required.
Answer: In addition to the order commission, positions also produce capital expenditures and liquidation expenses.
13. In trading futures with coin margin, what kind of currency can be used as margin:
Choices:
- The currency of the usdt margin wallet.
- The currency of this future.
- The currency of the wallet with margin of coins.
Answer: The currency of this future.
14. In the event of a service interruption on Binance Futures, you can use the “close all positions” feature to cancel all orders and close all open positions. However, due to unpredictable factors, the end result of performing this feature may deviate from the user’s expectations, and Binance will not be responsible for the final results.
Choices:
- all right
- I disagree
Answer: I accept
Conclusion
The above questions and answers come from the desktop version of Binance (binance.com).
If you are using the Binance mobile app, the questions will be different.
Then, you need to use the desktop version of Binance instead of the Binance mobile app.
Keep in mind that the cryptocurrency market is highly volatile.
In addition, futures trading is very risky due to the high leverage.
If you are a novice trader, you need to have a risk management strategy before you start trading.