> For the complete documentation index, see [llms.txt](https://czrex.gitbook.io/czrex-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://czrex.gitbook.io/czrex-docs/futures-trading.md). # Futures Trading CZR Futures allows eligible users to trade perpetual contracts that track the prices of supported digital assets without directly owning the underlying assets. Traders can open long or short positions and use leverage to increase their market exposure. Futures trading involves substantial risk. Leverage amplifies both profits and losses and may result in the rapid liquidation of a position. ### 1. Perpetual Futures A perpetual futures contract is a derivative that does not have a fixed expiration date. Traders can keep positions open while sufficient margin is maintained and the contract remains available. Perpetual contracts use mechanisms such as funding payments, index prices, and mark prices to help keep contract prices aligned with underlying spot markets. ### 2. Long and Short Positions Futures traders can take a position in either direction: * **Long:** A position that generally profits if the contract price increases. * **Short:** A position that generally profits if the contract price decreases. Profit and loss depend on position size, entry price, exit price, trading fees, funding payments, and execution. ### 3. Accessing CZR Futures To open the Futures trading interface: 1. Sign in to your CZR account. 2. Select **Trade**. 3. Choose **Futures**. 4. Select a supported perpetual contract. 5. Transfer collateral into your Futures Account. 6. Choose the margin mode and leverage. 7. Select an order type. 8. Enter the order details and review the risks. 9. Open a long or short position. Futures products may not be available to every user or in every jurisdiction. ### 4. Margin Margin is the collateral used to open and maintain a leveraged position. #### Initial Margin Initial margin is the minimum collateral required to open a position. Increasing leverage generally reduces the initial margin requirement but also reduces the amount of adverse price movement the position can withstand. #### Maintenance Margin Maintenance margin is the minimum collateral required to keep a position open. If the position’s margin falls below the applicable maintenance requirement, the position may be liquidated. ### 5. Leverage Leverage allows traders to control a position larger than the collateral committed. For example, a $1,000 position using 10× leverage may initially require approximately $100 in margin before fees and maintenance requirements. CZR may offer leverage of up to 125× on selected contracts. Maximum leverage depends on the contract, position size, risk tier, market conditions, account eligibility, and applicable restrictions. High leverage creates a very small margin for adverse price movements and substantially increases liquidation risk. ### 6. Cross Margin Cross margin allows eligible funds in the Futures Account to support multiple positions. Profits and available margin from one position may help support another position. However, losses from one position can consume more of the shared balance and place other positions at risk. ### 7. Isolated Margin Isolated margin separates the collateral allocated to a specific position from other positions. Users can manage the margin assigned to an isolated position without automatically exposing the entire eligible Futures Account balance. The position may be liquidated if its isolated margin becomes insufficient. ### 8. Important Futures Prices #### Entry Price The entry price is the average price at which a position was opened. #### Last Price The last price is the price of the most recent trade in the contract. #### Index Price The index price is a reference price calculated using selected external market data. #### Mark Price The mark price is a fair-price reference used to calculate unrealized profit and loss and determine liquidation risk. It is intended to reduce unnecessary liquidations caused by temporary price movements in the CZR order book. #### Liquidation Price The liquidation price is the estimated price at which the position may no longer meet its maintenance-margin requirement. Displayed liquidation prices are estimates and may change because of funding, fees, margin adjustments, position changes, and risk-tier requirements. ### 9. Futures Order Types CZR Futures may support order types such as: * **Market Order:** Attempts immediate execution at the best available prices. * **Limit Order:** Executes only at the selected price or better. * **Trigger Order:** Activates when a specified trigger price is reached. * **Take-Profit Order:** Attempts to close a position after a profit target is reached. * **Stop-Loss Order:** Attempts to reduce loss after a selected trigger is reached. Triggering an order does not guarantee execution at the trigger price. Volatility, gaps, insufficient liquidity, and system conditions may affect execution. ### 10. Funding Payments Funding payments help keep perpetual futures prices aligned with their underlying markets. Depending on the funding rate: * Long positions may pay short positions. * Short positions may pay long positions. Funding rates change over time. Traders should review the current funding rate and the next scheduled funding time before opening or maintaining a position. Funding payments may increase the cost of holding a position for an extended period. ### 11. Profit and Loss #### Unrealized Profit and Loss Unrealized P\&L represents the estimated profit or loss of an open position. It changes as the applicable market or mark price moves. #### Realized Profit and Loss Realized P\&L is recorded when a position is fully or partially closed. It may also include trading fees, funding payments, and other applicable charges. The final result may differ from the amount displayed before an order is executed because of price movement and slippage. ### 12. Liquidation Liquidation may occur when the available margin can no longer support a position. During liquidation, CZR’s risk system may reduce or close some or all of the position. The trader may lose the margin allocated to the position and may incur applicable liquidation-related charges. To reduce liquidation risk: * Use lower leverage. * Maintain additional margin. * Avoid oversized positions. * Monitor the liquidation price. * Use risk-management orders where appropriate. * Consider funding costs and market volatility. * Do not rely exclusively on stop-loss orders. ### 13. Reducing or Closing a Position A position can generally be reduced or closed by placing an order in the opposite direction. For example: * Sell to reduce or close a long position. * Buy to reduce or close a short position. Use the **Close Position** function where available and confirm whether the order will partially or fully close the position. Closing one position does not automatically cancel every related open order. Review outstanding orders after exiting. ### 14. Futures Fees Futures-related costs may include: * Maker fees * Taker fees * Funding payments * Liquidation-related charges * Other contract-specific fees Fees may depend on trading volume, VIP tier, promotion eligibility, and account classification. Review the official CZR fee schedule and order confirmation before trading. ### 15. Managing Futures Risk Before opening a futures position: * Understand the contract and settlement asset. * Review leverage and margin mode. * Calculate the potential loss. * Check the estimated liquidation price. * Review market liquidity and funding. * Set an appropriate position size. * Maintain sufficient margin. * Avoid using funds needed for essential expenses. ### Futures Risk Notice Futures are complex, high-risk financial products. Leverage can cause losses to accumulate quickly, and positions may be liquidated with little or no warning during volatile markets. Stop-loss and take-profit orders are not guaranteed to execute at their trigger prices. Users should trade futures only if they fully understand margin, leverage, funding, liquidation, and the possibility of losing their entire allocated balance.