Crypto Futures Trading Rules: Orders, Funding & Liquidation
The essential rules behind crypto perpetual positions, from order entry and funding to liquidation and closing methods.
Perpetual futures let traders take long or short crypto exposure without waiting for a contract expiry. That flexibility comes with rules that matter before the order is opened: the selected collateral, leverage, fee mode, funding schedule, maintenance requirement, and exit method all affect the final result.
Long and short positions
A long position is designed to benefit when the underlying market rises. A short position is designed to benefit when it falls. Both directions can lose money, and leverage increases the speed at which gains and losses change relative to the posted collateral.
Market and limit orders
| Order type | How it works | Main trade-off |
|---|---|---|
| Market order | Requests execution at the best available live price. | Fast entry or exit, but the final fill can differ in a moving market. |
| Limit order | Sets the highest buy price or lowest sell price the trader will accept. | More price control, but execution is not guaranteed. |
| Market close | Exits an open position using current available pricing. | Prioritizes speed over a specific exit price. |
| Limit close | Waits for a selected target price before closing. | The position remains exposed until the order fills or is cancelled. |
Collateral and position size
Collateral supports the open position and absorbs unrealized losses. The trading ticket may offer supported stablecoin balances or eligible promotional balances. A position should not be sized from the maximum leverage alone; traders should also consider volatility, planned stop levels, and the amount they can afford to lose.
Funding payments
Perpetual contracts use recurring funding to keep contract pricing aligned with the broader spot market. Public TurboFlow material states that funding windows vary by token and can occur every one to eight hours. The direction of payment depends on the displayed rate and the position side. A position closed before the next funding timestamp does not participate in that funding event.
Funding is separate from the selected trading fee model. Always review the countdown and estimated funding amount in the live interface.
Oracle pricing
TurboFlow references a weighted view of prices from several major exchanges. The goal is to use broader market information for position valuation and liquidation decisions. During highly volatile or disrupted markets, price feeds and execution can still move quickly.
Liquidation
Liquidation occurs when available collateral no longer meets the maintenance requirement for the open exposure. The exact threshold changes with leverage, asset parameters, and position conditions. The estimated liquidation price is a useful warning level, not a promise that an exit will occur at that exact number during extreme volatility.
Risk can be reduced by using less leverage, leaving additional collateral, reducing position size, and closing exposure before the maintenance threshold is reached.
Position management checklist
- Confirm the symbol, direction, and order type.
- Review the fee mode and estimated opening cost.
- Check funding timing and the current funding direction.
- Set leverage from risk tolerance, not from the maximum offered.
- Plan how the position will be reduced or closed before entry.
Trade crypto perps with the rules in view
Open the live futures interface to review current limits, collateral, funding, and estimated liquidation before confirming.
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