Pi42 Blog

India's 1st Crypto-INR Perpetual Futures Trading Platform

Pi42 Blog

India's 1st Crypto-INR Perpetual Futures Trading Platform

Author : Sarvesh Pandey

Understanding Crypto Volatility & How to Manage It

What is Crypto Volatility? Crypto volatility refers to the frequent and unpredictable price fluctuations that characterize the cryptocurrency market. Unlike traditional assets such as stocks or commodities, cryptocurrencies are highly volatile, meaning their prices can experience sharp rises and falls within a short period. While volatility presents risks for investors, it also creates opportunities for […]

What is Crypto API & How is it Used in Crypto Trading?

What is a Crypto API? A Crypto API (Application Programming Interface) is a set of protocols that allows traders, developers, and applications to interact with cryptocurrency exchanges and trading platforms programmatically. Instead of manually executing trades or retrieving market data, traders can use APIs to automate trading strategies, fetch real-time price data, and streamline portfolio […]

Top 10 Best Technical Indicators for Crypto Trading

Crypto trading is highly volatile, making it essential for traders to use technical analysis to make informed decisions. Technical analysis for crypto involves studying historical price data, market trends, and volume to predict future price movements. By utilising the best indicators for crypto trading, traders can gain an edge in identifying entry and exit points, […]

Delta Hedging in Options: A Guide for Crypto Traders

Key Takeaways Options trading offers unmatched flexibility, but also introduces complex risk dynamics. One of the most important risks to manage is delta, or directional exposure. Enter dynamic delta hedging, a strategy used by professional options traders to neutralize portfolio risk as market prices shift. For crypto traders dealing with volatile assets like BTC or […]

Hedging in Options: How Liquidity Providers Manage Risk

When you trade a crypto option and get an instant fill, it’s thanks to a liquidity provider. But these market participants aren’t taking blind directional bets. Instead, they use advanced hedging in options to manage exposures in real-time. The options market is built on volatility, uncertainty, and rapid movements. To stay solvent, liquidity providers constantly […]

Scenario Analysis: Testing Your Crypto Options Portfolio Under Different Market Conditions

When trading crypto options, understanding your potential P&L in best-case and worst-case outcomes is crucial. Given crypto’s extreme volatility, portfolio scenario analysis lets you model your options portfolio under different market conditions—bullish, bearish, sideways, or high volatility, and respond with confidence. Option scenario analysis isn’t just for institutions. It’s a must-have edge for individual traders […]

Synthetic Positions in Crypto Trading: Replicating Futures with Options

Crypto markets are volatile and fast-moving, making efficient hedging and leverage essential for active traders. While futures contracts are the go-to for leveraged exposure, they come with risks like liquidation and funding fees. Enter synthetic positions. These setups let you replicate the payoff of a futures position using options, often with defined risk and more […]

How Option Trading Volume and Options Order Flow Predict Moves in Crypto

In crypto options markets, price is just the surface. To get real insights, traders look deeper, at options order flow and option trading volume. These data points tell the story of who’s buying, what they’re targeting, and how aggressively they’re positioning. Whether you’re day trading or managing a directional portfolio, understanding orderflow in options and […]

Option Adjustment Strategies: How to Adjust Options Strategy Mid-Trade

Even the best-planned trades can run into surprises. Prices shift, volatility spikes, news breaks. That’s why knowing option adjustment strategies mid-trade is crucial. It helps traders manage risk, protect profits, and avoid unnecessary losses. This guide covers options trade adjustments, how to spot signals, and the most effective ways to execute them on platforms like […]

Ratio Spreads and Backspreads: Trading Volatility with Precision in Crypto Options

In crypto options trading, volatility isn’t just a risk—it’s an opportunity. While basic strategies like buying calls or puts work in clear trends, advanced traders use ratio spread option strategy and backspread option strategy to fine-tune volatility exposure and capture asymmetric payoffs. These approaches are often considered more effective than basic spreads because they let […]

Option Volatility and Pricing: Impact of News Events and Volatility Spikes in Crypto Markets

In crypto trading, markets don’t move, they lurch. A single tweet, CPI announcement, or ETF approval can send BTC or ETH soaring, or crashing in minutes. And before price even moves, option volatility and pricing start shifting in anticipation. These volatility spikes, often driven by news events, impact both traders and liquidity providers by significantly […]

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