BackQuant Glossary
BTC
Bitcoin, the largest crypto asset by market cap. The dominant underlying for crypto options, with the deepest options market on Deribit. BTC options open interest typically exceeds the rest of the crypto options market combined.
Related terms
Deribit
The dominant crypto options exchange, holding the majority of global BTC and ETH options open interest. Deribit standard expiries settle Friday at 08:00 UTC. The DVOL and ETH DVOL volatility indices are calculated from Deribit option prices.
Backwardation
A market structure in which near-dated contracts trade at higher prices (or higher implied volatilities) than longer-dated contracts. In futures, backwardation often signals near-term scarcity. In options IV term structure, backwardation signals an imminent catalyst or active stress in the market.
Basis
The difference between a futures or perpetual price and the underlying spot price. Positive basis means futures trade at a premium to spot; negative basis (sometimes called inverse basis) signals near-term selling pressure or fear. Cross-venue basis arbitrage is a core strategy in crypto market making.
Bid-Ask Spread
The gap between the highest current buy order (bid) and the lowest current sell order (ask) on an order book. Tight spreads indicate deep liquidity and competitive market making. Wide spreads indicate stress, low activity, or thin books.
Bybit
A major centralized derivatives exchange. Originally known for perpetual futures, Bybit has grown into a meaningful options venue and a primary aggregation source for crypto positioning data.
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