What Is the Donchian Channel?
The Donchian Channel is a technical analysis tool developed by American analyst Richard Donchian in the mid-20th century, designed to help traders identify market trends and potential trading opportunities. As
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What is the meaning of OI in crypto?
OI stands for “Open Interest” in the cryptocurrency market. It refers to the total number of outstanding futures or options contracts on a particular cryptocurrency exchange. Open interest is an important
Read MoreHow does open interest affect crypto?
Open interest can impact the cryptocurrency market in several ways: Market liquidity: An increase in open interest signifies more trading activity and liquidity, which can enhance market efficiency and the
Read MoreWhat is the difference between open interest and volume in crypto?
Open interest and volume are two important metrics used in the analysis of cryptocurrency markets, and they represent different aspects of market activity. Open interest refers to the total number
Read MoreFunding Rates
What is the funding rates? Funding rates are the fees set by cryptocurrency exchanges to maintain balance between contract prices and underlying asset prices, typically applicable to perpetual contracts. They
Read MoreWhat is the difference between Funding Rate and Funding Fees?
Funding Rate and Funding Fees are two related but different concepts in perpetual futures contracts trading. Funding Rate is a variable interest rate that is periodically charged to traders who hold a position
Read MoreHow is funding fees calculated?
Funding fees are calculated using the following formula: Funding fees = Position notional value * Funding rate Position notional value = Mark price x Quantity of contracts (for USDⓈ-Margined contracts)
Read MoreWhat determines funding rate?
The funding rate is determined by two components: the interest rate and the premium. The interest rate component is a fixed rate that is assumed to be higher for holding cash
Read MoreWhat does a high funding rate mean for Bitcoin?
In perpetual futures contracts, a high funding rate for Bitcoin refers to a rate that exceeds the baseline rate of 0.01%. Generally, the maximum upper limit for Bitcoin funding rates is
Read MoreWhat does a negative funding rate mean?
A negative funding rate means that short positions in perpetual futures contracts must pay funding to long positions. This typically occurs when the price of the perpetual futures contract is
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