How do you use volume delta in trading?

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services tailored to meet the diverse needs of traders. Its platform encompasses a range of functionalities, including spot trading, futures trading, and a secure wallet solution.

Volume Delta is a crucial metric in understanding market dynamics within cryptocurrency trading. It is derived by computing the disparity between the trading volumes at the offer price and the bid price. This calculation offers valuable insights into the balance of buying and selling forces within the market.

When Volume Delta exceeds zero, it signifies that the buying pressure outweighs the selling pressure. This scenario typically indicates an upward trend in prices as buyers compete to acquire more coins, pushing up the demand and subsequently the market value.

Conversely, if Volume Delta falls below zero, it reveals that the selling pressure is stronger than the buying pressure. This situation often leads to a downward movement in prices as sellers flood the market with their holdings, causing a surplus and subsequent decrease in the overall value.

With spot trading, BTCC enables users to buy and sell cryptocurrencies at their current market prices, providing a straightforward and efficient way to participate in the crypto market. Futures trading, on the other hand, allows traders to speculate on the future price movements of digital assets, offering increased leverage and potential for greater profits.