Last Updated on January 2, 2023 by cryptocreed
This is another quiz by Phemex where you can earn free crypto by answering simple questions on crypto derivatives. If you do not want to waste your time watching then these answers might be useful for you.
These answers are for educational purposes only. If you can then try to answer yourself else these answers can help you to assess wrong answers.
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This lesson will teach you every basic information and purpose of a crypto derivative from Phemex’s point of view. Also, it focuses mainly on Perpetual Contracts and related stuff like leverage, liquidation, and margin.
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Phemex Learn & Earn: What are Crypto Derivatives Answers
There are 4 lessons and in total there are 21 questions.
Lesson 1. Derivatives
Q1: Derivatives are secondary __ instruments in the form of __.
Answer: Financial, Contracts
Q2: A derivative contract is an agreement between two parties to
Answer: Buy or sell a particular asset for a predetermined price sometime in the future.
Q3: The value of a derivative contract is tethered to
Answer: Any target underlying asset.
Q4: Why is it easier to trade oil derivative contracts rather than oil itself?
Answer: All of the above
Lesson 2. Perpetual Contracts
Q1: What type of derivative contracts are offered on Phemex?
Q2: When must perpetual contracts be settled or expire?
Answer: Indefinite time
Q3: If you believe the price of BTC will rise, you would initiate a contract or position as a
Answer: Buyer (Long)
Q4: When you close a long position in profit, our system will
Answer: Automatically calculate and pay you the price difference between your contract opening and closing times.
Q5: Is there a cost or fee to keeping a position/contract open?
Lesson 3. Leverage and Liquidation
Q1: Can Phemex’s perpetual contracts be traded with leverage?
Q2: If you have 1 BTC, but you use 10x leverage to open your position, how much would your position be worth?
Answer: 10 BTC
Q3: If a position would have yielded $10 in profit without leverage, how much would it yield with 10x leverage?
Q4: What is the maximum leverage you can use for many of Phemex’s contract listings?
Q5: If your position gets liquidated you
Answer: Lose all of the funds you used to open that position.
Q6: The more leverage you use, the ___ your risk of liquidation.
Lesson 4. Margin
Q1: Margin refers to the funds you allocate to
Answer: Open Positions
Q2: If you open a position with 1BTC and 10x leverage, how much margin have you allocated to this position?
Answer: 10 BTC
Q3: If your position gets liquidated on isolated margin mode, you will
Answer: Lose only the funds allocated to the position.
Q4: Cross Margin mode allows Phemex to automatically
Answer: Employ unused available funds as additional margin for positions at risk of liquidation.
Q5: While using Cross Margin mode, is it possible to lose all of the funds in your account, even those not initially allocated to positions?
Q6: Adding more margin to a position decreases the risk of liquidation.