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Market mechanics, explained.

Short, practical explainers on the forces that move options, spot and futures across Bitcoin and Ethereum (BTC & ETH).

Not investment advice. We do not provide investment strategies or recommendations. Everything in these articles exists to give you the quantitative and analytical tools to reach your own conclusions from real data.

Spot & Futures

All spot & futures
askaskaskaskSPOT PRICEbidbidbidbidCashCoinsettles nowOrder book depth →

Spot & Futures 101 · Chapter 1

What is the spot market?

Buying the actual coin at the actual price, settled on the spot — the order book, the bid-ask spread and what "owning it" really means.

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USDⓈ-MMargin in USDTPnL in USDTLinear payoffCOIN-MMargin in BTCPnL in BTCInverse payoffno expiry ∞Perpetual futures · funding keeps it pinned to spot

Spot & Futures 101 · Chapter 2

Perpetual futures: USDⓈ-M vs COIN-M

A futures contract with no expiry date, and the two ways it can be collateralised — linear in stablecoin, or inverse in the coin itself.

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SPOTYOU OWNthe assetLEVERAGEnone (1x)COSTfees onlyPERPYOU OWNa contractLEVERAGEup to 100xCOSTfees + fundingSame underlying · different exposure

Spot & Futures 101 · Chapter 3

Spot vs futures

Same underlying, very different exposure — ownership, leverage, costs and risk compared side by side, and when each one is the right tool.

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SAME MARGIN · $1,000TO LIQUIDATION1x-100%5x-20%10x-10%20x-5%Position size grows · the margin buffer does not

Spot & Futures 101 · Chapter 4

Leverage, margin & P&L

Initial and maintenance margin, isolated vs cross, and the difference between unrealized P&L on screen and realized P&L in your balance.

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LIQUIDATION PRICEFunding · longs pay shortsevery 8h

Spot & Futures 101 · Chapter 5

Liquidation & the funding rate

Where your liquidation price comes from, how cascades feed themselves, and why funding is the mechanism that keeps a perpetual near spot.

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LONGSHORTPrice →Stoptriggers aboveMarketfills nowLimitwaits below

Spot & Futures 101 · Chapter 6

Long vs short & order types

The two directions you can take, and the orders that get you in and out — market, limit, stop-loss, take-profit, and post-only vs reduce-only.

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new positionsclosingVolume · contracts tradedOpen interest · contracts still open

Open Interest Series · Part I

What open interest is and how it is measured

Contracts still open, not contracts traded — how OI is counted, why it differs from volume, and what makes it rise, fall or stay flat.

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PRICE ↑ · OI ↑New longsPRICE ↑ · OI ↓Short coveringPRICE ↓ · OI ↑New shortsPRICE ↓ · OI ↓Longs closing

Open Interest Series · Part II

Reading flow: open interest, price and CVD

The price × OI matrix — new longs, short covering, new shorts, longs closing — and how cumulative volume delta tells you who was the aggressor.

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Open interestFundingLeverageCASCADE FUELHIGHCrowded positioning · one move away from forced exits

Open Interest Series · Part III

Open interest, funding & liquidation fuel

When rising OI meets persistent funding, positioning becomes fuel — how to spot a crowded book before the cascade, and what unwinds look like.

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