Derivatives
19 articles
Futures basis term structure: contango and backwardation
The shape of the futures curve encodes demand and carry. How to read contango vs backwardation in crypto, what each regime signals, and how to trade the roll.
DESKOpen interest vs volume: what each tells you
Volume is turnover; open interest is standing positions. Confusing them misreads the market. How to use the pair to tell new positioning from churn.
DESKThe estimated leverage ratio, explained
Open interest divided by exchange coin reserves estimates how leveraged the market is. How to read rising ELR as fragility and what it signals about squeeze risk.
DESKLong/short ratio: why the crowd is usually wrong
The long/short ratio shows how positioning leans. Why the retail version is often a contrarian signal, and how to read it without getting faked out.
DESKThe funding and open interest matrix
Cross funding rate with the direction of open interest and you get a four-box map of who's positioned and how fragile it is. A practical positioning framework.
DESKCross margin vs isolated margin for traders
The margin mode you choose decides how a losing position can take down your account. How cross and isolated differ, the liquidation implications, and when to use each.
DESKLiquidations explained: how cascades happen
A liquidation is a forced exit. Stacked leverage turns one into many. How the cascade mechanic works and how to read a liquidation map.
DESKMax pain and options expiry effects
Max pain is the strike where most options expire worthless. How much it really pulls spot, the dealer-hedging mechanics behind expiry pins, and what to expect after.
DESKFunding rate explained: how perp funding actually works
Funding is the tether between perp and spot. What it is, how the 8-hour payment is computed, and how to read positive vs negative regimes.
DESKOpen interest explained: what rising OI really means
OI counts live contracts, not volume. Pair it with price and funding and it tells you whether a move is new money or a squeeze.
DESKBasis carry trade — the math after fees and funding costs
CME basis at 7.4% annualized looks attractive. After execution, funding, and capital costs, the realistic carry yield is materially lower.
DESKBTC at $80,849 — funding flips reset positioning across venues
Funding rates on Binance, Bybit, and OKX have all turned positive after a week of negative readings. Open interest steady. Setup is a long-side reload, not a squeeze.
DESKSOL at $95 — spot vs perp basis tightens to flat
SOL basis (perp vs spot) has tightened to under +0.5% annualized — lowest since 2024. Either a positioning reset or a sign of structural exit. Read the funding to tell which.
DESKAggregate OI at $28.4B — composition matters more than the level
Total BTC perp open interest sits at $28.4B. That's middle of the recent range. The interesting data is how it's split across venues — and what that split usually precedes.
DESKFunding rate persistence as a regime indicator — what 30 days of data tells us
Looking at funding rate sign-persistence rather than the spot level reveals which trading regime we're in. Right now: balanced-to-bullish with a recent shift.
DESKLiquidation map heading into NY open — clusters and key levels
Heading into the New York open, the liquidation map shows a clear cluster $1,200 below spot and a sparser zone above. The asymmetry implies path-dependent risk.
DESKThe 24h funding heatmap — venues that matter
Not all funding rates are signal. Three venues set the marginal price; the rest follow. Knowing which is which improves your read.
DESKQ2 perp open interest distribution — what the trend is telling us
BTC and ETH perp OI ratios have shifted meaningfully over the quarter. The shift reveals where institutional vs retail flow is actually concentrated.
DESKImplied vol term structure: 7-day vs 30-day inversion explained
BTC's term structure is inverted — 7-day IV above 30-day. This is unusual and tells you something specific about near-term positioning.
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