Beyond spot, Palzea offers futures and options. Both are powerful tools that carry significantly more risk than spot trading.
Futures
A futures position lets you go long (profit if price rises) or short (profit if price falls) with leverage. Leverage multiplies both gains and losses: at 10x, a 10% adverse move wipes out your margin and triggers liquidation.
Key concepts
- Margin: the collateral backing your position.
- Liquidation price: the price at which your margin is exhausted and the position is closed automatically.
- Funding rate: a periodic payment between longs and shorts that keeps the contract price anchored to spot.
Options
An option gives you the right, not the obligation, to buy (call) or sell (put) at a fixed strike price before expiry. Buyers risk only the premium paid; sellers take on much larger obligations.
Never trade derivatives with funds you cannot afford to lose, and always set a stop-loss. Liquidations are irreversible.