Knowledge hub
Trading knowledge hub
Learn the essential concepts behind derivatives, risk management, and strategy validation through clear definitions and worked examples.
Funding Rate
Funding Rate
A periodic payment between long and short positions that helps keep perpetual futures prices close to spot prices.
Open Interest
Open Interest
The total amount of derivative contracts that remain open and have not been closed or offset.
Liquidation
Liquidation
The forced closure of a leveraged position after margin falls below the exchange's maintenance requirement.
Position Sizing
Position Sizing
A risk-management method that sets position size from the loss allowed on one trade and the stop distance.
Maximum Drawdown
Maximum Drawdown
The largest percentage decline from an equity peak to a subsequent trough during the measurement period.
Backtest Overfitting
Backtest Overfitting
A condition in which a strategy fits accidental noise in historical data more than a repeatable market principle.