Why High Liquidity and Deep Order Books Are Game-Changers for Crypto Derivatives Traders
Ever noticed how some crypto exchanges feel like a ghost town while others buzz with nonstop action? Yeah, liquidity isn’t just a buzzword—it’s the lifeblood of serious trading, especially when it comes to derivatives and perpetual contracts. Wow! It’s crazy how many traders overlook this, chasing shiny tokens instead of checking if there’s enough depth behind their orders. So here’s the thing: if your order book is shallow, slippage can eat you alive. Imagine trying to buy a big chunk of BTC perpetuals, and suddenly the price jumps because there’s not enough volume on the other side. That stings. Medium-sized orders can become massive market movers, and that’s a recipe for frustration and unexpected losses. Initially, I thought that portfolio margin was just a fancy term for managing risks, but then I realized it’s a fundamental enabler for trading large positions efficiently. It’s like having a bigger safety net that lets you...