Core Futures Terms
Perpetual contract (Perp): A derivative instrument that tracks an asset's price with no expiry date. Maintained near spot price through the funding rate mechanism. The dominant instrument in crypto derivatives markets.
Funding rate: A periodic payment (every 8 hours on most exchanges) between longs and shorts. When perp is above spot, longs pay shorts. When perp is below spot, shorts pay longs. Prevents the perpetual price from drifting away from the underlying spot price.
Liquidation: Forced closure of a position by the exchange when margin is insufficient to cover unrealized loss. Occurs faster than expected at high leverage. The primary risk of leveraged futures trading.
Margin: The collateral required to hold a leveraged position. Isolated margin: only that position's collateral is at risk. Cross margin: the entire account balance backs all positions.
Leverage: The multiplier applied to your margin to determine position size. 10x leverage on $1,000 margin controls a $10,000 position. Amplifies both gains and losses proportionally.
USDC-settled: P&L and margin denominated in USDC (a USD-pegged stablecoin) rather than the underlying asset. Eliminates coin-margined complexity where margin value itself fluctuates.
Long: A position that profits from price increase. Short: A position that profits from price decrease.
Entry zone: The price range at which a signal was generated. A zone rather than a single price accounts for normal bid/ask spread and slippage.
Invalidation: The price level at which the signal's original thesis is structurally broken. The correct exit point for a trade that is failing. Equivalent to a stop loss in practice.
Signal and System Terms
ZHC (Zero Human Calls): V23's AI-powered signal system name. Signals are generated, formatted, and delivered entirely automatically — no human intervention in the signal pipeline.
Conviction score: A numerical score (0–12 in the ZHC model) representing how many of the 12 quality categories are positive for a given signal. Higher score = higher confidence setup.
Signal grade: A letter grade (A+ through C) derived from the conviction score. Determines routing to paid channels. A+ = 11–12/12. A = 9–10/12. B+ = 8/12. B = 7/12. C = 5–6/12.
SNIPER mode: Structure-based signals requiring bar-close confirmation and 8/12 conviction. Higher timeframes, slower cadence, lower false-positive rate.
DEGEN mode: Momentum-based signals using EMA crossovers on 15m and 30m. Faster cadence, higher false-positive rate, tighter stops.
R-multiple (1R): The unit of risk per trade — the dollar amount risked on a single trade. A TP1 at 2R returns twice the risk amount. Standardizes performance across all trade sizes.
HTF (Higher Timeframe): Any timeframe above the signal timeframe. A 1H signal's HTF is the 4H. The 4H signal's HTF is the daily. HTF alignment is a key conviction scoring factor.
Bar-close confirmation: A signal that only fires after a candle has fully closed — not during the candle. Reduces false signals caused by wicks that reverse before close.
Building Watch: A pre-signal alert indicating a potential setup is developing but has not yet met full signal criteria. Educational context only — not an entry signal.
TP1/TP2/TP3: Target Price levels 1, 2, and 3. Structural levels at which partial or full profit-taking might be considered. Derived from prior structural levels, not arbitrary multiples.
Technical Indicator Terms
EMA (Exponential Moving Average): A moving average that weights recent data more heavily than older data. Responds faster to price changes than SMA.
VWAP (Volume-Weighted Average Price): The average price weighted by volume traded at each level. Represents the "fair price" consensus for a period. Institutional trading benchmark.
ATR (Average True Range): Measures the average range of a candle over N periods. Used to quantify volatility and size stops proportionally to current market conditions.
Golden cross: 50-period MA crosses above 200-period MA on the daily or weekly chart. Historically associated with the beginning of sustained bullish phases.
Death cross: 50-period MA crosses below 200-period MA. Associated with the onset of bearish phases.
Order block: The last bearish candle before a significant bullish impulse, or vice versa. Represents concentrated institutional order flow and acts as a structural support/resistance level on retest.
RSI (Relative Strength Index): A momentum oscillator measuring the speed and magnitude of recent price changes. Ranges 0–100. Above 70 = historically overbought. Below 30 = historically oversold.
This article is for educational and informational purposes only. Nothing here is financial advice or a recommendation to buy or sell any asset. Trading cryptocurrency futures involves substantial risk of loss. Past performance does not guarantee future results. Consult a licensed financial professional before making any trading decisions.