CCE Crypto Trading and Exchanges 2

Question 1

What is a 'maker' in the context of cryptocurrency exchange order books?

Accepted Answer

A trader who adds liquidity by placing limit orders that rest on the book

Answer

A trader who takes liquidity by filling existing orders

Answer

The exchange operator who sets trading fees

Answer

A market participant who holds assets for long-term investment

Question 2

Which order type guarantees execution but not price in cryptocurrency trading?

Accepted Answer

Market order

Answer

Limit order

Answer

Stop-limit order

Answer

Take-profit order

Question 3

What does 'slippage' mean in crypto trading?

Accepted Answer

The difference between the expected price and the actual execution price

Answer

The time delay between order placement and execution

Answer

The fee charged by an exchange for each trade

Answer

A technical error that cancels a pending order

Question 4

On a centralized exchange (CEX), who holds custody of user funds?

Accepted Answer

The exchange itself

Answer

The user via their private keys

Answer

A decentralized smart contract

Answer

A government-regulated custodian bank

Question 5

What is the purpose of a 'stop-loss' order?

Accepted Answer

To automatically sell an asset if its price falls to a specified level

Answer

To lock in profits when a price target is reached

Answer

To buy more of an asset when its price drops

Answer

To prevent an exchange from freezing your account

Question 6

What does 'KYC' stand for in the context of crypto exchanges?

Accepted Answer

Know Your Customer

Answer

Keep Your Crypto

Answer

Key Yield Calculation

Answer

Keychain Your Credentials

Question 7

In futures trading on a crypto exchange, what is 'funding rate'?

Accepted Answer

A periodic payment between long and short positions to keep perpetual contract prices near spot

Answer

The annual interest rate charged on margin loans

Answer

The fee paid to the exchange for opening a futures position

Answer

The minimum margin required to hold a leveraged position