OKEx launches derivatives Big Data platform, helps users analyse market

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.

• 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.

• 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.

• 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.

• 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.

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