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Biturai Trading Wiki
The Biturai crypto encyclopedia: AI-assisted, data-informed, and continuously quality-audited.
Calculating Liquidation Price with Isolated Margin
Understanding how to calculate the liquidation price in isolated margin trading is fundamental for managing risk in cryptocurrency futures.
Understanding Exchange Protection Mechanisms Against Market Price Manipulation
Market price manipulation involves intentionally influencing asset prices or trading volumes for financial gain, posing a significant threat to market integrity.
Impact Bid and Impact Ask Price in Funding Rate Calculation
The Impact Bid and Impact Ask Prices are derived from the order book's depth, representing the average price to execute a significant notional trade.
Index Price Calculation: Forming the Weighted Spot Basket
The Index Price is a composite reference value reflecting the fair market price of an underlying asset, calculated by aggregating spot prices from multiple reputable exchanges.
Mark Price vs. Index Price: The Fundamental Distinction in Crypto Futures
In cryptocurrency futures trading, understanding the difference between Mark Price and Index Price is essential for managing risk and calculating profit and loss.
Mark Price vs. Last Price: Understanding PnL Discrepancies in Futures
In crypto futures trading, the Last Price reflects the most recent transaction, while the Mark Price is an estimated fair value used for PnL calculation and liquidations.
Funding Flip: Interpreting Funding Rate Reversals as Market Signals
The funding rate is a periodic payment in perpetual futures contracts that aligns their price with the spot market. A funding flip, a reversal in this rate's direction, can signal a shift in market sentiment and potential price reversals.
Funding Carry Trade: Generating Yield from Funding Rates
The Funding Carry Trade is an advanced strategy in cryptocurrency markets that seeks to profit from the periodic payments exchanged between long and short positions in perpetual futures contracts.
Funding Rate vs. Borrow Rate: Understanding the Difference in Margin Trading
Funding rates and borrow rates are distinct mechanisms in crypto trading that impact position costs.
Funding Payment: Position Size and Its Impact
Funding payments are periodic exchanges between traders in perpetual futures contracts. The specific amount paid or received directly depends on the size of a trader's open position.
Understanding Aggregated Funding Rates Across Exchanges
Aggregated funding rates offer a consolidated view of market sentiment by combining data from various perpetual futures exchanges.
Positive Funding Rate: Understanding Payments in Perpetual Futures
When the funding rate in perpetual futures markets is positive, traders holding long positions pay those holding short positions.
Funding Rate Components: Interest vs. Premium Index
Perpetual futures contracts utilize a funding rate mechanism to keep their price aligned with the underlying spot asset.
Premium Index: Measuring the Funding Premium in Crypto Futures
The Premium Index quantifies the difference between the price of a perpetual futures contract and its underlying spot asset. It is a critical component of the funding rate mechanism, which helps align futures prices with spot prices.
The Fear of Falling Knives: Understanding Rapid Price Declines
A falling knife describes an asset experiencing a sharp, rapid price drop with no clear bottom in sight.
Funding Rate Caps and Floors: Limiting Extreme Funding Values
Funding rate caps and floors are predefined limits on the periodic payments exchanged between long and short positions in perpetual futures contracts.
Funding Interval in Perpetual Futures: Why Payments Occur Every Eight Hours
The funding interval in crypto perpetual futures refers to the regular schedule at which funding payments are exchanged between traders.
The Three Pillars of Successful Trading: Strategy, Risk, and Psychology
Consistent profitability in trading relies on a robust framework encompassing a well-defined strategy, stringent risk management, and disciplined psychological control.
Trading Psychology: Why Most Traders Fail
The vast majority of traders struggle not due to a lack of technical knowledge or market understanding, but because of psychological factors.
Trusting the Trading Edge: Applying the Law of Large Numbers Mentally
A trading edge is a statistical advantage that, over many trades, leads to profitability. The Law of Large Numbers ensures this edge manifests over time, requiring traders to maintain discipline through inevitable losing streaks.