Notitia
Betting on price with leverage.
Perpetual futures (‘perps’) let you take long or short positions with leverage and no expiry. A ‘funding rate’ keeps the price close to spot.
Leverage amplifies gains AND losses: a small adverse move can trigger liquidation and wipe the position. A powerful tool, high risk.
You open a $10,000 long with $1,000 of margin, BTC at $60,000. Where are you liquidated, and what does the position cost if kept open a month?
Test your understanding with a quick interactive quiz.
At 10x a 9.5% drop is enough, and funding eats 9% of the margin a month. A pro sizes the position on the risk accepted and sets a stop well before the liquidation price.