tracking-crypto-derivatives

# Tracking Crypto Derivatives

## Overview

Comprehensive derivatives market analysis across centralized and decentralized exchanges. This skill aggregates funding rates, open interest, liquidations, and options data to provide actionable trading insights.

**Supported Markets**:
- **Perpetual Swaps**: Binance, Bybit, OKX, Deribit, BitMEX
- **Futures**: Quarterly and monthly contracts
- **Options**: Deribit (primary), OKX, Bybit
- **DEX Perpetuals**: dYdX, GMX, Drift Protocol

## Prerequisites

Before using this skill, ensure you have:
- Python 3.8+ installed
- Network access to exchange APIs
- Optional: API keys for higher rate limits
- Understanding of derivatives concepts (funding, OI, basis)

## Instructions

### Step 1: Check Funding Rates

Monitor funding rates across exchanges to identify sentiment and arbitrage opportunities.

```bash
# Check BTC funding rates across all exchanges
python derivatives_tracker.py funding BTC

# Check multiple assets
python derivatives_tracker.py funding BTC ETH SOL

# Show historical average
python derivatives_tracker.py funding BTC --history 7d
```

**Interpret Results**:
- **Positive funding** (>0.01%): Longs pay shorts, bullish sentiment
- **Negative funding** (<-0.01%): Shorts pay longs, bearish sentiment
- **Extreme funding** (>0.1%): Potential contrarian opportunity

### Step 2: Analyze Open Interest

Track open interest to gauge market positioning and trend strength.

```bash
# Get BTC open interest across exchanges
python derivatives_tracker.py oi BTC

# Show OI changes over time
python derivatives_tracker.py oi BTC --changes

# Compare OI vs price
python derivatives_tracker.py oi BTC --divergence
```

**OI Interpretation**:
- **Rising OI + Rising Price**: Strong bullish trend
- **Rising OI + Falling Price**: Strong bearish trend
- **Falling OI + Rising Price**: Short covering rally
- **Falling OI + Falling Price**: Long liquidations

### Step 3: Monitor Liquidations

Track liquidation levels and recent liquidation events.

```bash
# Get liquidation heatmap
python derivatives_tracker.py liquidations BTC

# Show recent large liquidations
python derivatives_tracker.py liquidations BTC --recent

# Set minimum size filter
python derivatives_tracker.py liquidations BTC --min-size 100000
```

**Liquidation Signals**:
- Large liquidation clusters indicate support/resistance
- Cascading liquidations can accelerate price moves
- Long/short liquidation ratio indicates market direction

### Step 4: Analyze Options Market

Research options flow and implied volatility.

```bash
# Get options overview
python derivatives_tracker.py options BTC

# Show put/call ratio
python derivatives_tracker.py options BTC --pcr

# Find max pain for expiry
python derivatives_tracker.py options BTC --expiry 2025-01-31

# Track large options trades
python derivatives_tracker.py options BTC --flow
```

**Options Insights**:
- **High IV rank** (>80): Options expensive, consider selling
- **Low IV rank** (<20): Options cheap, consider buying
- **Max pain**: Price where most options expire worthless

### Step 5: Calculate Basis

Find basis trading and arbitrage opportunities.

```bash
# Get spot-perp basis
python derivatives_tracker.py basis BTC

# Get quarterly futures basis
python derivatives_tracker.py basis BTC --quarterly

# Show all basis opportunities
python derivatives_tracker.py basis --all
```

**Basis Trading**:
- **Positive basis**: Futures > Spot (contango, normal)
- **Negative basis**: Futures < Spot (backwardation)
- **Cash-and-carry**: Buy spot + sell futures when basis high

### Step 6: Full Dashboard

Get comprehensive derivatives overview.

```bash
# Full derivatives dashboard for BTC
python derivatives_tracker.py dashboard BTC

# Multi-asset dashboard
python derivatives_tracker.py dashboard BTC ETH SOL

# Export to JSON
python derivatives_tracker.py dashboard BTC --output json
```

See `{baseDir}/references/implementation.md` for detailed implementation guide.

## Output

The skill provides structured reports including:

### Funding Rate Report
```
BTC PERPETUAL FUNDING RATES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Exchange    Current    24h Avg    7d Avg    Next Payment
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Binance     +0.0150%   +0.0120%   +0.0080%  2h 15m
Bybit       +0.0180%   +0.0140%   +0.0100%  2h 15m
OKX         +0.0130%   +0.0110%   +0.0090%  2h 15m
Deribit     +0.0200%   +0.0150%   +0.0120%  2h 15m
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Weighted Avg: +0.0158%  |  Annualized: +17.29%
Sentiment: Moderately Bullish
```

### Open Interest Report
```
BTC OPEN INTEREST ANALYSIS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Exchange    OI (USD)      24h Chg    7d Chg    Share
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Binance     $8.2B         +2.5%      +8.1%     44.3%
Bybit       $4.5B         +1.8%      +5.2%     24.3%
OKX         $3.1B         +3.2%      +12.5%    16.8%
BitMEX      $1.5B         -0.5%      -2.1%     8.1%
Deribit     $1.2B         +0.8%      +3.4%     6.5%
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Total OI: $18.5B (+2.3% 24h)
Long/Short Ratio: 1.15 (53.5% long)
```

### Liquidation Heatmap
```
BTC LIQUIDATION LEVELS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Current Price: $67,500

LONG LIQUIDATIONS (below):
  $65,000 ████████████ $125M (HIGH DENSITY)
  $62,500 ███████      $85M
  $60,000 ████████████████████ $210M (CRITICAL)

SHORT LIQUIDATIONS (above):
  $70,000 █████████    $95M
  $72,500 █████████████ $145M (HIGH DENSITY)
  $75,000 █████████████████ $180M
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
24h Liquidations: Longs $45.2M | Shorts $32.8M
```

## Error Handling

See `{baseDir}/references/errors.md` for comprehensive error handling.

Common issues:
- **ERR_RATE_LIMIT**: Reduce request frequency or add API key
- **ERR_EXCHANGE_DOWN**: Exchange API unavailable, try alternative
- **ERR_SYMBOL_INVALID**: Check symbol format (BTC, ETH, not BTCUSDT)

## Examples

See `{baseDir}/references/examples.md` for detailed examples.

Quick examples:

```bash
# Morning derivatives check
python derivatives_tracker.py dashboard BTC ETH SOL

# Monitor funding for arbitrage
python derivatives_tracker.py funding BTC --alert-threshold 0.08

# Pre-expiry options analysis
python derivatives_tracker.py options BTC --expiry friday

# Find basis trading opportunities
python derivatives_tracker.py basis --all --min-yield 5
```

## Resources

### Data Sources
- **Coinglass**: Aggregated derivatives data
- **Exchange APIs**: Binance, Bybit, OKX, Deribit
- **The Graph**: DEX perpetuals data

### Key Concepts
- **Funding Rate**: Payment between longs/shorts every 8h
- **Open Interest**: Total outstanding contracts
- **Basis**: Difference between futures and spot price
- **Max Pain**: Strike where most options expire worthless
- **IV Rank**: Current IV percentile vs historical

### Risk Warning
Derivatives are leveraged instruments with high risk of loss.
- Funding costs accumulate over time
- Liquidations can happen rapidly
- Options can expire worthless
- This tool provides analysis only, not financial advice