Derivatives data can reveal information that price alone cannot, but metrics from different exchanges and providers may use different definitions, units, intervals and aggregation methods.
07
DERIVATIVES DATA
Derivatives & Market Data
Understand funding, open interest, liquidations, basis and positioning datasets used to describe crypto derivatives markets.
You should be able to interpret these datasets as market context without treating funding, open interest or positioning ratios as automatic directional signals.
LEARNING PATH
6 lessons
Study in this order.
01
Intermediate
Funding Rate
Funding is a periodic payment mechanism used by perpetual-futures markets to help keep perpetual contract prices aligned with their underlying spot or index reference.
→
02
Intermediate
Open Interest
Open Interest measures outstanding derivative contracts or positions according to the methodology used by the exchange or data provider. It describes existing exposure, not how much trading occurred during a period.
→
03
Intermediate
OI vs Volume
Volume measures trading activity during a period, while Open Interest measures outstanding derivative exposure. Studying both can provide more context than treating either as a directional signal.
→
04
Advanced
Liquidations
Liquidation occurs when a leveraged derivatives position no longer satisfies required margin conditions and the venue's risk system forcibly reduces or closes exposure according to its rules.
→
05
Advanced
Basis & Premium
Basis and premium describe relationships between derivative prices and a reference spot or index price. They help show how derivatives are priced relative to the underlying market.
→
06
Advanced
Long / Short Data
Long/short datasets summarize positioning according to a provider's chosen population and methodology. The label alone is not enough—you must know exactly what is being counted.
→
Understand first. Apply second.
Work through the concepts until you can explain what each metric, structure or rule actually measures. Then test how it behaves in different market conditions. No individual concept should be treated as a guarantee of future price movement.
← Back to Education Center