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Markets: Trading

What is Put/Call Open Interest Ratio?The put/call open interest ratio looks simple: puts outstanding divided by calls outstanding

What is Put/Call Open Interest Ratio?The put/call open interest ratio looks simple: puts outstanding divided by calls outstanding. What makes it useful is not the arithmetic, but the distinction between *positions still on the books* and *today’s trading flow* — a difference that changes how traders read sentiment, hedging, and crowding.Mar 22, 202623 min read

What is Options Skew?Options skew is the reason two options on the same asset and expiration can imply very different volatilities

What is Options Skew?Options skew is the reason two options on the same asset and expiration can imply very different volatilities. It exists because markets do not price upside and downside risk symmetrically, and that asymmetry changes hedging costs, volatility signals, and tail-risk interpretation.Mar 22, 202621 min read

What is Initial Margin?Initial margin looks like idle collateral until markets move fast and a counterparty fails

What is Initial Margin?Initial margin looks like idle collateral until markets move fast and a counterparty fails. Then it becomes the buffer that buys time: enough prefunded value to absorb likely losses while a position is closed out or replaced.Mar 22, 202622 min read

What Is Convexity? How Curvature Shapes Bonds, Options, and HedgingConvexity is what makes derivative risk change as markets move

What Is Convexity? How Curvature Shapes Bonds, Options, and HedgingConvexity is what makes derivative risk change as markets move. It explains why options can accelerate gains and losses, why bond duration stops being enough for large rate moves, and why dealer hedging can sometimes calm markets and sometimes amplify them.Mar 22, 202619 min read

What Is a Gamma Squeeze?A gamma squeeze is not just a fast rally with a dramatic name

What Is a Gamma Squeeze?A gamma squeeze is not just a fast rally with a dramatic name. It is a specific feedback loop: options dealers hedge call exposure by buying the underlying as price rises, and that hedging can itself push price higher when gamma is large.Mar 22, 202620 min read

What Is Slippage?Slippage is the gap between the price you thought you would get and the price you actually received

What Is Slippage?Slippage is the gap between the price you thought you would get and the price you actually received. That sounds like a small execution detail, but it is really where liquidity, market structure, latency, and MEV all become visible in a single number.Mar 21, 202623 min read

What is Spot Trading?Spot trading is the simplest way to trade an asset: you pay now, you get the asset now, and your profit or loss comes from what that asset is worth when you later sell it

What is Spot Trading?Spot trading is the simplest way to trade an asset: you pay now, you get the asset now, and your profit or loss comes from what that asset is worth when you later sell it. That simplicity is exactly why spot markets sit underneath so much of trading, from exchange order books to on-chain swaps.Mar 21, 202623 min read

What is a VWAP Order?A VWAP order tries to solve a simple but difficult problem: how do you buy or sell a large position without pushing the market too far away from you? Instead of sending one big order, it spreads trading through the day in proportion to market volume, aiming to finish near the market’s volume-weighted average price

What is a VWAP Order?A VWAP order tries to solve a simple but difficult problem: how do you buy or sell a large position without pushing the market too far away from you? Instead of sending one big order, it spreads trading through the day in proportion to market volume, aiming to finish near the market’s volume-weighted average price.Mar 21, 202623 min read

What is RFQ (Request for Quote)?RFQ, or Request for Quote, exists for a simple reason: sometimes the best way to trade is not to expose your full order to the whole market

What is RFQ (Request for Quote)?RFQ, or Request for Quote, exists for a simple reason: sometimes the best way to trade is not to expose your full order to the whole market. Instead, a buyer or seller asks selected liquidity providers for executable prices, compares the responses, and chooses whether to trade.Mar 21, 202626 min read

What Is a Take-Profit Order?A take-profit order sounds simple: close the trade when price reaches your target

What Is a Take-Profit Order?A take-profit order sounds simple: close the trade when price reaches your target. The important part is what happens next, because on some venues the trigger sends a market order, while on others it places a limit order — and that difference determines whether you get certainty of exit, certainty of price, or neither.Mar 21, 202625 min read

What is a Trailing Stop Order?A trailing stop order tries to solve a simple problem: how do you protect a gain without choosing, in advance, the exact price where the trend must end? It moves the stop with favorable price movement, but that convenience comes with mechanical tradeoffs around triggers, gaps, and execution

What is a Trailing Stop Order?A trailing stop order tries to solve a simple problem: how do you protect a gain without choosing, in advance, the exact price where the trend must end? It moves the stop with favorable price movement, but that convenience comes with mechanical tradeoffs around triggers, gaps, and execution.Mar 21, 202623 min read

What is a TWAP Order?A TWAP order solves a simple but costly problem: how to trade a large position without revealing all of it at once to the market

What is a TWAP Order?A TWAP order solves a simple but costly problem: how to trade a large position without revealing all of it at once to the market. Instead of sending one big order, it breaks the trade into smaller pieces and releases them over a fixed time window, trading predictability for a different set of execution risks.Mar 21, 202623 min read