Home Cryptocurrency Phemex Quiz Answers: What are Crypto Derivatives (Perpetual Contracts)

Phemex Quiz Answers: What are Crypto Derivatives (Perpetual Contracts)

by cryptocreed

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.

Note: You Can Register On Phemex Using Our Link To Support Us & $10 Bonus From Phemex)

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.

Things To Remember While Taking Phemex Quiz Answers

  1. Learn and Earn page can be accessed here “https://phemex.com/learn-crypto”.
  2. Login to check if you are eligible or not.
  3. Try to use a mobile device.
  4. Questions will be not in the same format for everyone.
  5. Rewards will get credited to your account within 48 hours.
Total reward: $0.60
Start & End Date: NA
What to do: Watch a video for a few minutes and answer 21 questions.

Must Read: How To Trade Perpetual Contracts On Phemex Answers

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?

Answer: Perpetuals

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?

Answer: Yes

Lesson 3. Leverage and Liquidation

Q1: Can Phemex’s perpetual contracts be traded with leverage?

Answer: Yes

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?

Answer: $100

Q4: What is the maximum leverage you can use for many of Phemex’s contract listings?

Answer: 100x

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.

Answer: higher

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?

Answer: Yes

Q6: Adding more margin to a position decreases the risk of liquidation.

Answer: True

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