Easy access to big data of OKEx markets to make your trading strategies well-informed

How do you make your trading decisions? after careful research? or just go with your gut feeling?

When it comes to trading futures contracts and perpetual swaps, there isn’t really much data available in the market to help with your trading decisions.

That’s why we’re launching the Futures & Perpetual Swap Market Data — the first-of-its-kind big data platform in the industry.

This new feature is exclusive to customers logged into OKEx. From there, you can access the real-time data of our futures and perpetual swap markets of 9 mainstream tokens, such as the long/short positions ratio, sentiment index, and basis.

Our objective is to provide accurate, unbiased trading data to help our customers develop their own trading strategies. And of course, along with the general market data already available at OKEx, we hope that the additional insights will also help our customers better understand the market.

In this new feature, there are 6 indicators to help our customers get a grasp of the market trend:

  • Long/Short Users Ratio
  • Basis
  • Open Interest and Trading Volume
  • Buy/Sell Taker Volume
  • Top Trader Sentiment Index
  • Top Trader Average Margin Used

1. Long/Short Users Ratio

This indicator shows the ratio of the total number of users opening long vs short positions over a period of time. The ratio is compiled with weekly, bi-weekly, quarterly futures contracts, and perpetual swaps. The long/short side of a user is determined by his/her net position of the token.

What it means:

  • In the derivatives market, whenever there’s a long position opened, there must be a short position opened as well to balance it. The total number of long positions must equal the total number of short positions.
  • When the ratio is high, it shows that the average number of positions opened per user from the long side is smaller than the average number of positions opened per user from the short side.

2. Basis

This indicator shows the contract/swap price, spot index price and also the basis. Basis of a particular time = contract/swap price – spot index price.

What it means:

  • Contract/swap price reflects traders’ expectation on the future price of the underlying asset. When the basis is positive, it indicates that the general market is bullish. When it is negative, it implies a bearish outlook.
  • Basis is often mentioned with premium rate. Premium rate = basis / spot index price
  • Under normal circumstances, the basis of weekly contracts is lower, and the basis of quarterly contracts is higher. The basis of quarterly contracts can better indicate the long-term market trend.
  • When the premium rate is high (either positive or negative), it means that there’s more room for customers to arbitrage.

Funding Rate Arbitrage Strategy Report
An analysis of the arbitrage opportunity between the spot margin trading interest rate and perpetual swap trading…medium.com

3. Open Interest and Trading Volume

Open interest is the total number of outstanding futures contracts/swaps, while trading volume is the total trading volume of futures contracts and perpetual swap over a specific period of time.

What it means:

  • If there’re 2,000 long contracts and 2,000 short contracts opened, the open interest will be 2,000.
  • If the trading volume surges and the open interest decreases in a short period of time, it may indicate that a lot of positions are closed or force-liquidated.
  • If both the trading volume and open interest increase, it indicates that a lot of positions are opened.

4. Buy/Sell Taker Volume

Buy taker volume: the active buying volume (taker) over a specific period of time, indicating an inflow.

Sell taker volume: the active selling volume (taker) over a specific period of time, indicating out outflow.

What it means:

  • When the buy taker volume is high, it indicates a bullish market. When the sell taker volume is high, it reflects a bearish sentiment.
  • In general, retail customers make more taker orders. The buy/sell taker volume can be treated as an indicator of the market prediction from retail customers.

5. Top Trader Sentiment Index

This indicator shows the percentages of long vs short positions held by the top traders. One active account is entitled to one vote, regardless of its position size. (only the accounts that are holding positions are counted as active.) If the account is holding hedging positions, then its vote depends on its net position.

What it means:

  • This indicator is very similar to long vs short positions ratio. However, only the data from the top 100 traders at OKEx are included in the calculation.
  • This index should be considered together with the long/short positions ratio for better trading insights.

6. Top Trader Average Margin Used

This indicator reflects how the top 100 traders use their deposited capital. Unlike TTSI, TTAMU doesn’t count votes. Instead, it is calculated from the average percentage of initial margin used by the top traders.

What it means:

  • It shows how funds are used and allocated by the top 100 traders (average).

Risk Warning: Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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