OptiNod Academy
Derivatives Data
Browse all 7 parts in the Derivatives Data series and start from the section you need.
Funding Rate — Reading Crowd Positioning
Funding rate is not just a fee. It shows which side is too crowded, and extreme funding is a sign that those positions are vulnerable to liquidation.
Basis and Perpetual Futures Premiums: Reading Overheated Leverage Before Price Confirms It
The gap between spot and futures prices, along with perpetual futures premiums, can reveal overheated leverage and deleveraging before price makes the move obvious.
OI — Open Interest
Use the price x OI four-quadrant framework with the funding sign to separate fresh positioning from liquidations, even when the candles look the same.
The Open Interest Trap: Why OI Only Matters When You Read It With Price and Funding
The belief that rising open interest means a stronger trend comes from reading OI in isolation. The same increase in OI can mean new capital or late-chasing positions, depending on price and funding.
Long/Short Ratio — A Contrarian Read on Crowded Positioning
The long/short ratio is not a trend signal. It is a contrarian gauge of crowd psychology. Normal readings are noise, and only extremes offer clues about liquidation risk.
Liquidation Cascades: When Liquidations Trigger More Liquidations
A large part of a sharp selloff is not driven by new information. It is a liquidation cascade: forced mechanical selling that pushes price too far before it snaps back.
Options IV and Skew: Which Tail Is the Market Pricing Higher?
Options are volatility instruments before they are directional instruments. IV and skew show in prices whether the market fears upside or downside tail risk more.