What is Open Interest? Open interest is the total number of open positions held by market participants. Open interest sums the total number of contracts (both short and long) that are opened by the market participants and subtracts the number of contracts that are closed. For example, if Sally opens a long position on BTC …
Category: Cryptocurrency Trading Guides
Aggregated Predicted Funding Rate
What are predicted funding rates? As mentioned in the previous article, funding rates are mechanisms to ensure that the price of a perp contract converges with its underlying spot price. Most exchanges show to features, the historical funding rates, the funding rate that was paid in previous intervals, and the predicted or real-time funding rate …
Aggregated Funding Rate
What is Funding Rate? Perpetual Futures, or perps, have been around since 2016, first introduced by BitMex. Today almost all centralized exchanges have introduced perps. Perpetual Futures, as the name suggests, are futures contracts that do not expire. Traditional futures markets involve speculating on the price of an asset at a certain expiration date. Hence, …
What is Open Interest and how to use it for trading?
In the cryptocurrency market, derivatives trading is becoming more popular than ever. Therefore, to make our traders’ lives easier, Coinalyze added some new indicators to the charts. Among the most important is definitely Open Interest. What is open interest and how to use it in derivatives trading is the thing that we are about to …
The Cumulative Volume Delta (CVD) indicator: Analyzing Buyer and Seller Activities
To the untrained eyes, candlestick formations can be haphazard. However, a level deeper there is a unique story at each point of time. Depending on a trader’s preferred trading style, time frame, tools and even indicators, a technical chart is vital for a chartist. Since the chart is a complete representation of all fundamental and/or …
Cryptocurrency Futures Trading Guide
Since we have added cryptocurrency futures markets we are obliged to introduce them to those who are not familiar with the concept. Cryptocurrency futures contracts trading When trading cryptocurrency futures, a trader signs a contract with a predetermined outcome. That means that a trader doesn’t exchange one cryptocurrency for another. He doesn’t even exchange it …
Buy vs Sell Volume and Buy vs Sell Count Indicators – The New and Better Way to Analyze the Trading Volume
If you are using Coinalyze you may have run into some fresh additions in the technical indicators department. We have implemented Buy vs Sell Volume and Buy vs Sell Count indicators. Visually, these two indicators look similar to the regular volume bars. However, there is a significant difference. In order to explain thoroughly what each …
Cryptocurrency Arbitrage
If you are not familiar with arbitrage in cryptocurrency trading, allow us to introduce you to this strategy through the most simple possible definition. Arbitrage is a strategy where traders make profits by making use of the coin’s price imbalance. Sounds simple, right? Well, it is but it is not so basic as the definition …
How to Trade in a Bear Market?
Many of you who are reading these lines are, perhaps, a bit more optimistic than two months ago when we were hitting the rock bottom prices of our favorite crypto assets. However, if we are finally out of the bear market, market cycles appear cyclically, and what we are about to explain will come in …
How to Trade in a Bull Market?
Considering the fact that Bitcoin (BTC) price along with the most alts have begun to establish some steady supports, investors throughout the cryptocurrency market are slowly becoming more and more optimistic. Usually, as the optimism spreads to the majority of investors, the bull market is bound to follow. Therefore, in this article, we are going …