Crypto Derivatives
Perpetuals, funding, open interest and liquidation cascades — the machinery behind every violent crypto candle.
ORIN already scores funding, open interest and positioning as extra factors on crypto and no lesson explained any of them, which meant the engine graded on evidence the student had never seen. Perps are also the most traded instrument in crypto by a wide margin, so this is the mechanism most retail traders are exposed to and least often taught.
- 1What a perpetual actually isnot written yet
A futures contract with no expiry, and the problem that creates.
Checkpoint: — - 2The funding rate, from first principlesnot written yet
Understand funding as the tether between perp and spot.
Checkpoint: — - 3Reading funding as positioningnot written yet
Tell leverage demand from genuine trend.
Checkpoint: Call the grade - 4Open interest: four combinationsnot written yet
Price up with OI up is not price up with OI down.
Checkpoint: Sequence - 5Liquidation cascadesnot written yet
Why crypto wicks further than the news deserves.
Checkpoint: Spot the trap - 6Sizing when the exchange can close younot written yet
Liquidation price is not your stop, and treating it as one is fatal.
Checkpoint: Size the trade - 7Basis and the cash-and-carry tradenot written yet
Where the spread between perp and spot actually goes.
Checkpoint: — - 8When derivatives data liesnot written yet
Exchange-specific quirks, and why one venue is not the market.
Checkpoint: Spot the trap
The concepts here are applied in the Trade Playbook, and the engine that grades them is taken apart in how AI chart analysis works.