The endpoints provided here cover Open Interest (OI), Volume, and Turnover metrics across different instruments in cryptocurrency derivatives trading. OI refers to the number of outstanding derivative contracts (like options and futures) that are not yet settled. Volume indicates the number of contracts traded during a specific time frame, while Turnover refers to the total value of contracts traded.
Open Interest (OI) is a term referring to the total number of outstanding derivative contracts, like futures and options, that are not yet settled. Open Interest is often used as an indicator of the market's liquidity and can give an impression of money flowing into or out of a specific asset. High levels of Open Interest might suggest that new money is coming into the market, indicating an increased interest in the asset.
Volume is the measure of the number of contracts traded within a defined time frame. A high trading volume is often associated with lower spreads and higher order fulfillment rates, proving beneficial to traders.
These endpoints offer various ways to analyze OI and volume. They include views on a global scale, broken down by put and call options, specific instrument names, strike prices, and more. The purpose is to provide traders with a rich set of data to base their strategies on.
What is Open Interest (OI), Volume, and Turnover?
- Open Interest refers to the total number of outstanding derivative contracts, like futures and options, that have not been settled. Volume indicates the number of contracts traded during a specific period, and Turnover refers to the total value of contracts traded.
How can these OI, Volume, and Turnover endpoints assist me?
- These endpoints offer insights into market activity, liquidity, and sentiment. By breaking down OI, Volume, and Turnover by instrument and put/call contracts, you gain a clearer understanding of trading activity and market sentiment. Historical data on the change in OI at different strike prices and expiration dates allows for tracking the evolution of market sentiment over time.
What is the significance of 'Put' and 'Call' in these endpoints?
- Puts and Calls are types of options contracts. A call option gives the holder the right to buy an asset at a certain price within a specific period, generally indicating a bullish market sentiment. Conversely, a put option gives the holder the right to sell an asset at a certain price within a specific period, typically signaling a bearish market sentiment. These endpoints break down OI, Volume, and Turnover by put and call contracts, providing insights into market sentiment.
How can this data be incorporated into trading strategies?
- Data on OI, Volume, and Turnover can help gauge market activity, liquidity, and sentiment. For instance, a significant increase in call volume or OI may indicate bullish sentiment, potentially signaling an upward price movement. Conversely, a significant increase in put volume or OI might suggest bearish sentiment, possibly indicating a downward price trend. Tracking these metrics over time can help traders predict market movements and refine their strategies.
Updated 4 months ago