What Is a “Data Feed” and How Does It Relate to Options Trading Oracles?
A data feed is a continuous stream of updated information, such as asset prices, delivered to the smart contract by an oracle. For options trading, this feed is critical as it determines the value of the underlying asset at any given time, which is necessary for margin calculations and final settlement.
The quality, latency, and reliability of this data feed directly impact the fairness and security of the options contract execution.
Glossar
Margin Calculations
Collateral ⎊ Margin calculations within cryptocurrency derivatives, options trading, and financial derivatives fundamentally represent the equity required to support potential losses, acting as a good faith deposit against counterparty risk.
Data Feed
Source ⎊ A data feed in financial derivatives is the continuous stream of market information, such as price, volume, and order book depth, originating from exchanges and liquidity venues.
Options Trading
Stewardship ⎊ Involves utilizing these contracts to manage exposure to assets whose underlying technology or governance may evolve, ensuring capital is not locked into potentially obsolete systems.