b9_1155what is correlation?
how much two things tend to move together, from −1 (move in opposite directions) to +1 (move perfectly in step).
it changes over time and often rises when markets fall. five positions that move together can act like one big bet.
related words
- funding rate regular payments between buyers (longs) and sellers (shorts) of perpetual futures.
- concentration having a large share of everything in one asset, platform, chain or wallet.
- mark price a "fair" price, mostly based on an index of spot prices, that many exchanges use to trigger liquidations.
part of the topic risk: free articles, more words and the guide.
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