Long exposure
A long position generally benefits if the referenced market rises, but losses occur if it moves against the position.
CRYPTO PERPETUAL TRADING
PERPS / MARGIN / LEVERAGE / LIQUIDATION
Understand perpetual trading before opening a position.
Crypto perpetual contracts are derivatives that can provide long or short market exposure without a fixed expiry date. They can involve collateral, margin, funding and leverage. These mechanics can increase trading flexibility, but they also increase the speed and severity of potential losses.
DERIVATIVESMARGINLEVERAGE RISKLIQUIDATION RISK
PERPETUAL BASICS
Know the mechanics before using leverage.
The exact fields and risk parameters vary by market and connected infrastructure, but several concepts are common across perpetual trading. Review the live market, collateral requirements and position details before submitting an order.
Short exposure
A short position generally benefits if the referenced market falls, while rising prices can create losses.
Collateral supports the position
Perpetual trading typically requires eligible collateral and margin to keep a leveraged position open.
Exposure can exceed collateral
Leverage magnifies both gains and losses. Small market moves can have a large impact on account equity.
Funding can affect holding cost
Many perpetual markets use recurring funding payments or similar mechanisms to help align contract and underlying prices.
Positions can be forcibly closed
If margin falls below required levels, the position may be liquidated according to the market's rules.
BEFORE YOU OPEN A TRADE
Read the position, not just the direction.
ORDER CHECK
Verify the trade details.
MARKETCorrect pair or contract
Make sure you are trading the intended market.
SIDELong or short
Confirm whether the order increases long or short exposure.
SIZEPosition amount
Check size and leverage together rather than looking at one number in isolation.
RISK CHECK
Understand the downside.
MARGINAvailable collateral
Know how much collateral supports the position and how losses affect it.
LIQUIDATIONLiquidation threshold
Review displayed liquidation information when available.
EXITPlan how to close
Understand market and limit orders, open orders and how to reduce or close the position.
RELATED TRADING GUIDES
Learn the access and custody model too.
PERPETUAL TRADING FAQ
Quick answers.
What is a crypto perpetual contract?+
It is a derivative contract designed to track an underlying market without a fixed expiry date.
Can I lose money quickly with leverage?+
Yes. Leverage increases exposure relative to collateral, so adverse moves can create rapid losses or liquidation.
Does HOODBTC guarantee perpetual market availability?+
No. Supported markets and geographic availability depend on the live trading infrastructure and may change over time.
DERIVATIVES EDUCATION
Open HOODBTC Trade ↗Know the margin and liquidation risk before trading.
Use the official HOODBTC Trade interface and verify every market, order and risk parameter.