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Biturai Trading Wiki
The Biturai crypto encyclopedia: AI-assisted, data-informed, and continuously quality-audited.
Futures vs. Spot: Key Differences for Crypto Traders
Understanding the fundamental distinctions between spot and futures trading is essential for navigating the cryptocurrency markets effectively.
Perpetual vs. Quarterly Futures: When to Use Which Contract
Perpetual futures offer continuous exposure without an expiry date, relying on a funding rate mechanism to track the spot price.
Coin-Margined Futures: Understanding Inverse Contract Mechanics
Coin-margined futures are cryptocurrency derivatives where the underlying crypto asset serves as both collateral and settlement currency.
USDT-Margined vs. Coin-Margined Futures: A Comparative Analysis
Cryptocurrency futures contracts offer traders opportunities to speculate on price movements with leverage.
Understanding Multipliers and Contract Value in Crypto Futures
Crypto futures contracts allow traders to speculate on cryptocurrency price movements without owning the underlying asset.
Pyramiding and Average Entry Price
Pyramiding is a trading strategy where investors gradually add to an existing profitable position as the market moves favorably.
Entry Price Versus Average Entry Price in Partial Executions
When trading derivatives or futures, understanding the difference between the initial entry price and the average entry price is fundamental.
Calculating the Break-Even Price of a Futures Position Including Fees
The break-even price in futures trading is the point where total revenue equals total costs, resulting in zero profit or loss. This calculation must account for all trading fees and, for perpetual contracts, dynamic funding fees.
Mark-to-Market: Daily Revaluation of Open Futures Positions
Mark-to-Market is the daily accounting process that adjusts the value of open futures positions to their current market price. This mechanism ensures that gains and losses are settled daily, impacting a trader's account balance and margin.
Calculating Profit and Loss for Long and Short Positions
Profit and Loss (PnL) quantifies the financial outcome of a trading position, distinguishing between unrealized gains/losses on open trades and realized gains/losses on closed ones.
Return on Equity in Futures Trading: Interpreting ROE
Return on Equity (ROE) in futures trading measures the profitability of an individual trade relative to the initial margin committed.
Realized vs. Unrealized PnL in Futures Trading
In futures trading, understanding the distinction between realized and unrealized Profit and Loss is fundamental for assessing performance and managing risk.
Notional Value: Calculating the Nominal Value of a Futures Position
Notional value represents the total underlying value of a financial contract, such as a futures position, distinct from the actual capital a trader commits.
Understanding Liquidation Risk and Leverage
Liquidation is the forced closure of a leveraged trading position when a trader's margin falls below exchange requirements.
Maximum Leverage: Why Exchanges Limit Leverage
Leverage trading allows amplifying market exposure using borrowed funds, but it equally magnifies potential losses.
Understanding Effective vs. Set Leverage in Crypto Trading
Leverage in crypto trading involves two distinct concepts: set leverage and effective leverage.
Wallet Balance, Margin Balance, and Available Balance in Futures Trading
Understanding the distinct roles of Wallet Balance, Margin Balance, and Available Balance is fundamental for effective futures trading.
Increasing Position Margin to Prevent Liquidation
Increasing the margin of an open leveraged position is a critical risk management strategy in futures trading.
Auto Margin Replenishment Explained
Auto Margin Replenishment is a risk management feature designed to automatically add collateral to an isolated margin position. This mechanism helps traders prevent premature liquidation by utilizing available funds in their account.
Unified Trading Account: Shared Margin Across Spot, Futures, and Options
A Unified Trading Account consolidates various trading products into a single interface, allowing a shared margin balance across spot, futures, and options.