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Perpetual futures, funding and liquidation

Intermediate·9 min read·Premium lesson

Most crypto volume trades on perpetual futures: contracts with no expiry date that track the spot price. They let you go long or short with leverage. To keep the contract price close to spot, longs and shorts pay each other a funding rate, usually every 8 hours on major exchanges.

The full lesson covers funding, open interest, liquidation prices and how crowded positions create big moves.

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The rest of this lesson includes the exact rules, diagrams, live chart examples, a checklist and a practice drill. Premium members get all 101 lessons.

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