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One candle for each lesson 15 of 15 open Perps basicsOrders and exits
One candle for each lesson 15 of 15 open Perps basics Orders and exits

Read a lesson, light a candle.

Learn how crypto futures work

Short lessons with worked examples in USDT. Each idea comes with a question to check it, and you can practise it in Cryptathon with virtual money.

2 modules15 lessonsFree

Perps basics8 lessons, one lap 12345678
Perps basics8 lessons, one lap 12345678

1 Module 1

Perps basics

What a perpetual future is, and how leverage, margin, isolated and cross margin, liquidation, mark price and funding work.

  1. What a perpetual future isA perpetual future follows the price of a coin and never expires. You hold a contract, not the coin, and your profit or loss is in USDT.5 min
  2. Long and shortA long gains when the price rises and a short gains when it falls. You close a long by selling and a short by buying.5 min
  3. LeverageLeverage makes the same price move count more on your margin, for gains and for losses.5 min
  4. MarginMargin is the USDT that holds a position open. You lock the initial margin to open it, and the position must keep the maintenance margin or it is liquidated.6 min
  5. Isolated and cross marginIsolated margin gives each position its own margin. Cross margin backs all positions with one shared balance, which gives more room but puts everything at risk.6 min
  6. LiquidationLiquidation closes your position when your margin left falls to the maintenance margin, measured at the mark price.7 min
  7. Mark price and last priceThe last price is the last trade. The mark price follows the index and moves slowly, so the exchange uses it for liquidation, stops and funding.5 min
  8. FundingFunding is a payment between longs and shorts every 8 hours. It is worked out on the position size, and the rate follows the premium of the mark over the index.6 min
Orders and exits7 lessons, one lap 1234567
Orders and exits7 lessons, one lap 1234567

2 Module 2

Orders and exits

How the order book works, which order to use, what fees and slippage cost, and how to plan your exit.

  1. The order bookThe order book lists the prices people wait to buy and sell at, and how much waits at each price.5 min
  2. Market and limit ordersA market order trades at once against the book. A limit order waits in the book at the price you set.5 min
  3. Maker and taker feesA maker order waits in the book and pays a lower fee. A taker order trades with the book at once and pays more.5 min
  4. SlippageSlippage is the gap between the price you saw and the average price you got, because a market order uses up the book one price at a time.6 min
  5. Stop ordersA stop order waits for a trigger price, then becomes a normal order that trades in the book.5 min
  6. Take-profit and stop-lossA take-profit and a stop-loss send market exits when the mark price reaches levels you choose.5 min
  7. Reduce-onlyA reduce-only order can only make your position smaller. It never opens or grows a position.4 min

Calculators

New word? Look it up in the glossary.