Marché Futures: What Is the Funding Rate?
Title: Understanding the Funding Rate on Futures ⏱️💸
Content:
The Funding Rate is an essential mechanism that keeps the price of perpetual contracts close to the Spot market price.
📊 How to read it?
Positive Funding: Long positions pay Short positions. This indicates a very bullish sentiment (or even overheating if the rate is very high).
Negative Funding: Short positions pay Long positions. This shows predominantly bearish pressure.
An extremely high Funding Rate often signals an imminent risk of cascading liquidations.
#FuturesTrading #FundingRate #BinanceFutures #CryptoDerivatives #TradingMetrics @BNB
Title: Understanding the Funding Rate on Futures ⏱️💸
Content:
The Funding Rate is an essential mechanism that keeps the price of perpetual contracts close to the Spot market price.
📊 How to read it?
Positive Funding: Long positions pay Short positions. This indicates a very bullish sentiment (or even overheating if the rate is very high).
Negative Funding: Short positions pay Long positions. This shows predominantly bearish pressure.
An extremely high Funding Rate often signals an imminent risk of cascading liquidations.
#FuturesTrading #FundingRate #BinanceFutures #CryptoDerivatives #TradingMetrics @BNB