Crypto Derivatives & Market Structure
Perpetual contracts, funding rate, open interest and the liquidation map are the language the market uses to describe its own positioning. Most traders watch price alone; here we teach you to read the layer beneath it — where leverage is concentrated, which way the crowd is skewed, and where a liquidation cascade is building.
This data doesn’t predict the future, but it shows where the market is fragile. Understanding structure, you see in advance the zones price is drawn to like a magnet — and avoid becoming fuel for someone else’s move.
Key concepts
- Liquidation map — where stops and leverage cluster, and price gravitates
- Funding rate — who pays to hold a position and how overheated one side is
- Open interest (OI) — how much money is actually parked in positions right now
- Long/short ratio (LSR) — which way the crowd leans and why that’s a contrarian signal
Long/Short Ratio Explained: How to Read LSR
What Long/Short Ratio is, three flavors of LSR, four price-and-LSR scenarios, when the signal lies, and why LSR is never a standalone trade. Moami AI guide.
·9 minOpen Interest Explained: How to Read It
What Open Interest is, how it changes and what it tells you about trend health. Four price-and-OI scenarios, mistakes and strategies — Moami AI guide.
·8 minFunding Rate Explained: Reading the Perp Signal
What funding rate is, how the calculation works, how to read extremes versus normal, and why funding alone is never a trade. An educational guide by Moami AI.
·8 minLiquidation Map: A Guide for Crypto Traders
What a liquidation map is, how to read it, and how disciplined traders use it together with order book depth and funding rate. Educational guide from Moami AI.
·7 min
Funding, open interest, LSR and the liquidation map are just numbers on their own. Together they form a positioning map that shows where the market is vulnerable and where liquidity is most likely to flow.