Derivatives

Learn about the concept of cryptocurrency derivatives, differences from spot trading, and the main types including futures, options, and perpetual contracts.

Learn about cryptocurrency futures contract structure, margin systems, leverage mechanics, and long/short position concepts.

Learn about the structure of perpetual contracts (perps), the funding rate mechanism that keeps prices anchored, and differences from dated futures.

Learn about profit/loss structure by leverage level, differences between cross and isolated margin, margin management strategies, and how to determine appropriate leverage.

Learn how perpetual futures funding rates are calculated, how to interpret positive/negative rates, what extreme values mean, and how to use BitInsight's funding rate panel.

Learn about the concept of Open Interest (OI), how to interpret it with price movements, identifying position accumulation and liquidation, and how to use the BitInsight OI panel.

Learn about the meaning of global long/short ratio, how to use it as a contrarian indicator, combining it with other derivatives indicators, and using the BitInsight long/short panel.

Learn about forced liquidation mechanisms, liquidation price calculation, how cascade liquidations work, and how to use liquidation heatmaps.

Learn about the difference between mark price and index price, how fair prices are calculated, and how liquidation reference prices work.

Understand the meaning of spot-futures price divergence (basis), contango and backwardation states, and how to interpret market sentiment.

Learn about futures premium structure, annualized premium calculation, cross-exchange premium differences, and how to identify arbitrage opportunities.

Learn about the spot vs derivatives volume ratio, characteristics of derivatives-driven markets, and exchange market share.

Learn a practical analysis framework for judging market conditions by combining funding rate, open interest, and long/short ratio.

Learn about cryptocurrency options concepts, call/put option structures, strike prices and expiration, and premium with intrinsic and time value.

Learn about the four Greeks (Delta, Gamma, Theta, Vega) that measure option price sensitivity and their practical interpretation.

Learn about the concept and calculation of Max Pain, the impact of options expiry on price, and how to analyze options open interest.

Learn about position sizing, stop-loss strategies, capital management, leverage warnings, and survival principles in derivatives trading.

Learn about spot hedging, delta neutral strategies, funding rate arbitrage, and other risk management strategies using derivatives.