Level 3 · Module

Derivatives

Much of crypto trading happens in futures, not in the coins themselves. Leverage, funding, open interest and liquidations decide how those markets move — and they leave numbers anyone can read.

You will be able to
  • Know what leverage does to a position — and where it gets liquidated
  • Read funding and open interest together with price
  • See why liquidations cascade, and why long/short ratios mislead
  1. 1Perpetual futures and leverage: where a position gets liquidated
  2. 2Funding rate explained: who pays whom, and what it tells you
  3. 3Open interest explained: new positions, or old ones closing?
  4. 4Liquidations and cascades: why crypto can fall so fast
  5. 5Long/short ratio explained: what it counts, and why it misleads
  6. 6Practice: read the positioning of the BTC perpetual

Education only, not financial advice.