Markets
Spot vs derivatives markets: the structural difference
Spot markets trade the actual asset for delivery; derivatives trade contracts on its price. The structural difference and why it…
Marcus Reed
Marcus Reed explains how crypto markets function mechanically — order books, liquidity, spreads and exchange mechanics. He describes how markets work, never what to trade.
Markets
How liquidity fragments across venues
Liquidity fragmentation splits an asset's trading across many venues, so each has only a slice of the depth. Learn how…
Markets
Why thin markets move so violently
Thin markets have little depth near the price, so even ordinary orders move them sharply. Learn the order-book mechanics and…
Markets
Impermanent loss, explained arithmetically
Impermanent loss is the shortfall a liquidity provider takes versus holding when pool prices diverge. See the exact constant-product math…
Markets
How automated market makers work
An automated market maker prices trades with a formula over a pooled reserve instead of an order book. Learn the…
Markets
What market makers do
Market makers continuously quote both a buy and a sell price and earn the spread for providing instant liquidity. Here…
Markets
What liquidity actually means in a market
Market liquidity is how easily you can trade an asset without moving its price. Learn the three parts, tightness, depth…