Biturai Trading Wiki
The ultimate crypto encyclopedia. Verified by experts.
Extrinsic Value in Crypto Options: A Comprehensive Guide
Extrinsic value represents the portion of an option's premium that is not derived from its intrinsic value. It reflects market expectations, time until expiration, and volatility, playing a crucial role in options trading strategies.
Option Premium: The Ultimate Guide for Crypto Traders
Option premium is the price a buyer pays to purchase an options contract. It reflects the time value, risk, and market volatility of the underlying asset and is crucial for understanding and trading crypto options successfully.
Back Month: Decoding Crypto Market Cycles
Back Month refers to the period when the crypto market, particularly after a significant downturn, begins to show early signs of recovery before the next bull run. Understanding the dynamics of Back Month is crucial for investors aiming to optimize their entry and exit points in the volatile crypto market.
Delivery Month in Crypto Trading
Delivery Month is the specific month when a futures contract in crypto trading expires, requiring settlement. This settlement can involve the physical delivery of the underlying asset or a cash payment, depending on the contract terms.
Cash Settlement Explained in Crypto
Cash settlement is a method used in derivatives trading where the final value of a contract is paid in cash, rather than the physical delivery of an asset. This simplifies the process, particularly for volatile assets, and is common in options and futures contracts.
Tick Size in Crypto Trading: A Biturai Deep Dive
Tick size is the smallest increment by which the price of a cryptocurrency can change on an exchange. Understanding tick size is crucial for traders, as it directly impacts market liquidity, order execution, and overall trading strategies.
Open Interest in Crypto Futures: A Biturai Deep Dive
Open Interest (OI) is a crucial metric in crypto futures trading, representing the total number of open contracts in the market. Understanding OI helps traders gauge market sentiment, potential trend reversals, and the strength of price movements.
Calendar Roll: Options Strategy in Crypto
A Calendar Roll is a strategy used in options trading to adjust an existing position by moving it to a later expiration date. This allows traders to potentially profit from changes in volatility or market direction, or to manage risk.
Roll Yield: A Comprehensive Guide for Crypto Traders
Roll yield is a key concept in futures trading, representing the profit or loss from rolling over contracts. Understanding roll yield is crucial for managing risk and maximizing returns in the dynamic world of cryptocurrency derivatives.
Basis (Futures): A Comprehensive Guide
Basis in futures trading represents the price difference between a cryptocurrency's spot price and its futures contract price. Understanding basis is crucial for market-neutral strategies and managing risk in the volatile crypto markets.
Futures Price
Futures price refers to the current market value of a futures contract, which is an agreement to buy or sell an asset at a predetermined price on a specified future date. Understanding futures price is critical for anyone engaging in futures trading, as it reflects market expectations and can be used for speculation and hedging.
Forward Contracts Explained: A Biturai Guide
Forward contracts are private agreements to buy or sell an asset at a predetermined price on a future date. They offer flexibility but carry counterparty risk, making them suitable for specific hedging needs.
Target Close Order Explained
A Target Close Order allows traders to automatically execute a buy or sell order when the market price reaches a predefined target. This can be used to lock in profits, limit losses, or enter new positions at a specific price.
Three Inside Up: A Bullish Reversal Pattern in Crypto Trading
The Three Inside Up candlestick pattern is a powerful signal for a potential bullish reversal in a downtrend. It's a three-candle pattern that suggests the market may be shifting from a bearish to a bullish sentiment, offering traders a valuable opportunity to identify potential entry points.
Meeting Lines: Navigating Trends and Levels in Crypto Trading
Meeting lines, often called trend lines or channel lines, are essential tools in technical analysis, helping traders identify price trends, support, and resistance levels. By understanding and applying meeting lines, traders can make more informed decisions about when to enter or exit trades, manage risk effectively, and potentially increase their profitability in the volatile world of cryptocurrency.
High Wave Candle: A Comprehensive Guide
The High Wave candle is a key pattern in technical analysis, signaling market indecision. It's characterized by a small real body and long wicks, indicating potential trend reversals.
Edge Ratio: Quantifying Your Trading Advantage
Edge Ratio is a crucial metric in trading, measuring the favorable price movement against adverse price movement. Understanding and utilizing Edge Ratio helps traders assess the potential profitability of their strategies and improve risk management.
Crypto Fear and Greed Index: A Deep Dive
The Crypto Fear and Greed Index is a tool that analyzes market sentiment in the cryptocurrency space. It helps traders gauge market emotions and make informed decisions, identifying potential buying or selling opportunities.
Initial Margin: Your Guide to Crypto Leverage
Initial margin is the upfront collateral required to open a leveraged position in crypto. Understanding initial margin is crucial for managing risk and maximizing potential returns in margin trading.
Percentage of Volume (POV) Trading Strategy
Percentage of Volume (POV) is a trading strategy that allows traders to execute large orders by participating in a set proportion of the market's trading volume. This approach helps to minimize market impact and control execution pace, especially when dealing with substantial order sizes.