In the past 24 hours, $HOOD has fallen by 3.9%. The current price is 113.89, but the funding rate is still stable at 0. The price drops but the funding rate doesn’t move. Longs aren’t panicking to close positions, and shorts aren’t wildly adding. The market is in a kind of hesitant equilibrium.
This selloff did not trigger a chain reaction in the funding rate. A funding rate of 0 means that the costs for long and short positions are roughly the same, so neither side is paying an expensive premium. Typically, a sharp price drop comes with the funding rate turning negative—because shorts rush in and overpower longs. But that didn’t happen this time. My view is that the position structure is relatively stable: it may be driven by medium- to long-term hedging or sidelined capital, with fewer short-term speculative traders.
On the global news front, major U.S. tech stocks have generally been under pressure recently. For HOOD, which operates as a brokerage platform, it following the broader adjustment makes sense. Open interest is 173,600 lots. At the current price, that’s nearly $20 million. The open interest hasn’t clearly flowed out despite the price falling, suggesting some capital is holding through the move or waiting.
The most dangerous scenario for this structure is if, after a break below 113, the funding rate suddenly turns negative. That would mean shorts start to gain momentum and could trigger a quick downward move. If the price can range-bound between 113 and 114 and the funding rate stays neutral, then the downside momentum may fade.
Trading tag: #TradFi #链上美股 #HOOD
Where do you think this analysis is most likely to be wrong?
This selloff did not trigger a chain reaction in the funding rate. A funding rate of 0 means that the costs for long and short positions are roughly the same, so neither side is paying an expensive premium. Typically, a sharp price drop comes with the funding rate turning negative—because shorts rush in and overpower longs. But that didn’t happen this time. My view is that the position structure is relatively stable: it may be driven by medium- to long-term hedging or sidelined capital, with fewer short-term speculative traders.
On the global news front, major U.S. tech stocks have generally been under pressure recently. For HOOD, which operates as a brokerage platform, it following the broader adjustment makes sense. Open interest is 173,600 lots. At the current price, that’s nearly $20 million. The open interest hasn’t clearly flowed out despite the price falling, suggesting some capital is holding through the move or waiting.
The most dangerous scenario for this structure is if, after a break below 113, the funding rate suddenly turns negative. That would mean shorts start to gain momentum and could trigger a quick downward move. If the price can range-bound between 113 and 114 and the funding rate stays neutral, then the downside momentum may fade.
Trading tag: #TradFi #链上美股 #HOOD
Where do you think this analysis is most likely to be wrong?