Crypto futures and spot trading both track the same price. They are different products with different ownership, different costs, and different failure modes. The same price move produces different outcomes depending on which one you are in. A spot trader…
Leverage.Trading analyzed 5,963 crypto futures contracts across 15 major derivatives exchanges and found that only 6.7% offer leverage of 100x or more, despite advertised exchange limits reaching as high as 500x. The data shows how much leverage is actually available…
Crypto futures fees fall into four types: a maker or taker fee on every fill, a funding payment every eight hours on perpetual positions, a settlement fee on dated contracts at expiry, and a liquidation penalty if the exchange force-closes…
When a leveraged position loses enough value, the exchange closes it automatically. No phone call. No warning. No chance to add margin. The system that does this is called a liquidation engine, and it runs on every crypto derivatives platform…
Long squeezes and short squeezes are the same event seen from opposite sides. In both, one crowded side of the market gets liquidated, and the forced orders shove the price even harder in the direction it was already moving. The…
Most exchanges decide how much leverage you can use based on how big the trade is. On small positions, the cap can be 100x or higher. On bigger ones, the exchange scales it back, and the maintenance margin behind the…
Funding payments reduce the margin behind an open perpetual futures position. When margin drops, the liquidation price moves closer to entry, even when the market price has not changed. The cost is invisible on the chart, but the shift in…
Look at the steepest red wicks on any Bitcoin futures chart, and most of the displacement on the way down came from forced closes, not from anyone deciding to sell. The exchange’s risk engine fires market orders into a thin…
Two traders open the same BTC position at the same moment. They use the same entry price, leverage, and direction. One exchange shows a liquidation price 1.8% closer to entry than the other. Neither exchange made an error. Different exchanges…
Mark price is the price the exchange uses to calculate unrealized profit and loss and decide when to liquidate a position. It is not the price shown on the chart. Crypto futures contracts display two numbers at all times: the…