Does the Fund’s Size Correlate with the Exchange’s Trading Volume?
Yes, the insurance fund's size generally correlates positively with the exchange's trading volume. Higher trading volume often leads to higher open interest and more liquidation events.
Since the fund is capitalized by a portion of liquidation fees and surpluses, higher activity naturally contributes to its growth. Conversely, a large fund can also encourage higher volume, as it signals a safer trading environment.