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Press Release

OKEx launches derivatives Big Data platform, helps users analyse market

"We are proud to say that we are the first in the industry to provide this kind of data"

Malta. 3rd August 2019 – OKEx, a digital asset exchange, has launched Futures & Perpetual Swap Market Data, a first-of-its-kind Big Data platform in the industry offering accurate, unbiased trading data for customers to understand the derivatives market. This new feature exclusively allows OKEx users to access the real-time data of OKEx’s futures and perpetual swap markets of nine mainstream tokens including BTC, LTC, ETH, ETC, XRP, EOS, BCH, BSV and TRX.

Futures & Perpetual Swap Market Data features six indicators to help OKEx customers get a grasp of market trends, including long/short positions ratio, basis, open interest and trading volume, buy/sell taker volume, Top Trader Sentiment Index, and top trader average margin used. Along with the general market data already available, this new Big Data platform will provide additional insights that help customers better identify market trends and develop their own trading strategies.

“Derivatives trading requires a steeper learning curve, as it involves the use of margin and leverage. Once we realised that there isn’t really much data available in the market to help users analyse market trends, we decided to build a tool that can benefit our users. That’s why we launched this Big Data platform, and we are proud to say that we are the first in the industry to provide this kind of data. As a leader, we are committed to bringing the best user experience and building a healthy trading environment for all,” says Andy Cheung, Head of Operations of OKEx.

Futures & Perpetual Swap Market Data Indicators: 

Long/short positions 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 from 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 does it mean?

  • 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 to 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.
This indicator shows the contract/swap price, spot index price and also the basis difference. Basis of a particular time = contract/swap price – spot index price.What does it mean?
  • Contract/swap price reflects traders’ expectation on the subject. When the basis is positive, it indicates that the general market is bullish. When the basis is negative, it indicates that the general market is bearish.
  • 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.
Open interest and trading volume
Open interest is the total number of outstanding contracts/swaps. While trading volume is the total trading volume of futures contracts and perpetual swap over a specific period of time.What does it mean?
  • 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.
Buy/sell taker volume
Buy taker volume: the active buying volume (taker) over a specific period of time, indicating the inflow.
Sell taker volume: the active selling volume (taker) over a specific period of time, indicating the outflow.What does it mean?
  • When the buying volume is high, it indicates the market is bullish. When the selling volume is high, it indicates the market is bearish.
  • In general, retail customers make more taker orders. Buying and selling volume can be treated as an indicator of the market prediction from retail customers.
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 does it mean?
  • This indicator is very similar to long vs short positions ratio. However, only the top 100 traders at OKEx will be included in the calculation.
  • This index should be considered together with long vs short positions ratio for better trading insights.
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 does it mean?
  • It shows how funds are used and allocated by the top 100 traders (average).

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