VPIN

Volume-Synchronized Probability of Informed Trading, a bucketed measure of order-flow imbalance.

VPIN stands for Volume-Synchronized Probability of Informed Trading, introduced by Easley, Lopez de Prado and O'Hara. It splits trading into equal-volume buckets instead of equal-time intervals, classifies each bucket's volume into buyer-initiated and seller-initiated, and reports the average imbalance across a rolling window of buckets. Volume clocking is the point: it keeps a minute of frantic trading and a minute of nothing from being treated as the same observation. Read it against its own distribution, never as an absolute level, and never as a timer. We compute it from real taker prints rather than the bulk classification approximation the original paper had to use, and publish the series for BTC, ETH and SOL perpetuals.

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Other terms

Funding Rate
Periodic payment between perpetual futures longs and shorts that keeps the contr...
Open Interest
Total notional value of all open futures positions at a given moment....
Basis
Price gap between a futures contract and its underlying spot index....
Mark Price
The exchange's fair-value price for a perpetual, derived from the spot index plu...
Liquidation
Forced closure of a leveraged position when its margin is exhausted....
Profit Factor
Ratio of gross winning trades to gross losing trades. Above 1 means the strategy...

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