54 articles in Derivatives.
Open interest measures the total outstanding derivative contracts. Learn how traders use OI to gauge market conviction and predict price moves.
A short squeeze forces short sellers to buy back, creating a feedback loop that drives price higher. Learn how to identify and trade short squeezes in crypto.
Open interest divergence occurs when OI trends opposite to price, signaling hidden accumulation or distribution. Learn how to trade OI divergences.
An open interest increase means new contracts are being created, signaling fresh money entering the market. Learn what rising OI means for price.
An open interest decrease means positions are being closed, signaling money leaving the market. Learn how declining OI affects price direction.
An open interest spike is a sudden surge in outstanding contracts that signals aggressive positioning. Learn how to interpret and trade OI spikes.
Open interest buildup is a gradual increase in outstanding contracts signaling conviction accumulation. Learn how buildup precedes major moves.
An open interest flush is a rapid drop in outstanding contracts driven by mass liquidations or panic exits. Learn how flushes create reversals.
Open interest imbalance is the skew between long and short positions in the market. Learn how OI imbalance predicts squeeze setups.
Open interest expansion is a sustained rise in contracts that confirms trend strength and conviction. Learn how expansion validates breakouts.
Open interest contraction is a sustained decline in contracts signaling waning conviction and upcoming volatility compression. Learn its implications.
Leveraged open interest measures OI relative to market cap, revealing how much leverage is built into a market. Learn how it predicts volatility.
A long squeeze forces leveraged long traders to sell, creating a cascade of liquidations that drives price lower. Learn how to identify and trade long squeezes.
Leverage allows traders to control larger positions with less capital. Learn how leverage works in perpetual futures and how it amplifies risk and reward.
Leverage ratio measures the relationship between open interest and available collateral. Learn how aggregate leverage predicts market-wide liquidation risk.
Max leverage is the highest multiplier an exchange allows for a given market. Learn how max leverage affects liquidation distance and risk management.
Cross margin uses your entire account balance as collateral for all positions. Learn how it compares to isolated margin and when to use each mode.
Isolated margin limits collateral to a single position, capping your maximum loss. Learn how isolated margin provides risk containment for leveraged trades.
A margin call warns that your position is approaching liquidation and needs additional collateral. Learn how margin calls work in crypto futures trading.
Maintenance margin is the minimum collateral required to keep a leveraged position open. Learn how it determines your liquidation price.
Initial margin is the collateral required to open a leveraged position. Learn how initial margin relates to leverage and affects position sizing.
Perpetual futures are derivative contracts with no expiry date that track an underlying asset's price. Learn how perps work and why they dominate crypto trading.
Mark price is the fair value reference price used for liquidations and unrealized PnL in perpetual futures. Learn how mark price prevents unfair liquidations.
Index price is the volume-weighted average spot price from multiple exchanges, used as the anchor for perpetual futures pricing and funding calculations.
Basis is the difference between futures price and spot price. Learn how basis reflects market sentiment and creates arbitrage opportunities in crypto trading.
Contango occurs when futures trade above spot price, signaling bullish sentiment and carrying cost. Learn how contango affects crypto perpetual futures trading.
Backwardation occurs when futures trade below spot price, signaling bearish sentiment or high demand for the underlying. Learn how to trade backwardation.
Settlement is the process of closing a futures contract at expiry and determining profit or loss. Learn how cash settlement works in crypto futures trading.
An insurance fund covers losses from bankrupt positions that liquidation couldn't fully close. Learn how insurance funds protect traders from socialized losses.
Auto-deleveraging automatically closes profitable positions when the insurance fund is depleted. Learn how ADL works and how to minimize your risk.
Clawback is a socialized loss mechanism where profitable traders share the losses from bankrupt positions. Learn how clawback works and which exchanges use it.
Learn how to use open interest data for trading decisions — from trend confirmation to squeeze detection in crypto perpetual futures.
Learn how to correctly interpret open interest data and avoid common misinterpretations that cost traders money.
Learn how to identify and trade OI divergences — when open interest trends opposite to price, signaling hidden shifts in positioning.
Learn how to use open interest data to time precise trade entries in crypto perpetual futures markets.
Learn how to use open interest signals to time exits — from OI exhaustion to flush events that signal position closure.
Learn how to detect dangerous leverage buildup in crypto markets using OI/MCap ratio, leverage ratio, and liquidation cluster analysis.
Learn how to identify when open interest data is misleading — from wash trading to OI manipulation that traps directional traders.
Learn how to identify and trade OI squeeze setups where concentrated positioning forces mass liquidations and creates explosive moves.
Learn how to combine open interest data with price action for higher-conviction trades using the 4-quadrant OI-price framework.
Learn how to analyze open interest trends across timeframes — from OI regimes to rate-of-change analysis for predicting market moves.
Learn how to spot short squeeze setups early using funding extremes, OI concentration, and liquidation cluster proximity.
Learn how to spot long squeeze setups where overleveraged longs face forced liquidation cascades driving price lower.
Learn the complete playbook for trading squeeze setups — from pre-squeeze entry to squeeze ride and post-squeeze reversal.
Learn how to anticipate squeeze events using the squeeze probability scorecard — funding, OI, liquidation, and momentum signals.
Learn how to use leverage ratio, estimated leverage, and leveraged OI for fragility detection and risk-adjusted trading.
Learn how to identify when high leverage creates trap conditions — sudden OI spikes, thin books, and engineered cascades.
Learn how to trade during and after leverage flush events — from flush exhaustion detection to post-flush reversal entries.
Learn how to analyze market conditions that precede squeeze events — leverage, positioning, liquidation proximity, and momentum.
Learn how to interpret and act on squeeze signals — from funding alerts to OI concentration warnings and liquidation proximity.
Learn how to trade after a squeeze exhausts — identifying completion signals, OI reset, and mean-reversion entry strategies.
Implied volatility is the market's forecast of future price movement derived from options pricing. Learn how IV signals fear, complacency, and directional expectations in crypto.
Mean reversion is the tendency of price to return to its average after extreme moves. Learn how traders use mean reversion to time entries in perpetual futures.
Beta measures an altcoin's volatility relative to Bitcoin. Learn how high-beta assets amplify BTC moves and how traders use beta for position sizing in perpetual futures.