I counted 88 underlying assets that have contracts, and only 10 have a negative funding rate.
A negative funding rate means shorts are paying longs. It usually happens when shorts are trapped and refuse to close their positions.
$KERNEL is the most extreme—its funding rate is -0.9955%, while the benchmark is +0.01%. The difference between them is a full two orders of magnitude. Going down, $VTHO at -0.10% and $MINA at -0.0845% are much more in the normal range.
My view is that only values in that kind of magnitude count as a real signal; the following ones are more like noise—slightly negative versus strongly negative have completely different meanings.
Does anyone build a strategy specifically based on negative funding rates? I’d like to ask how to filter them. Not investment advice
# Funding Rate
A negative funding rate means shorts are paying longs. It usually happens when shorts are trapped and refuse to close their positions.
$KERNEL is the most extreme—its funding rate is -0.9955%, while the benchmark is +0.01%. The difference between them is a full two orders of magnitude. Going down, $VTHO at -0.10% and $MINA at -0.0845% are much more in the normal range.
My view is that only values in that kind of magnitude count as a real signal; the following ones are more like noise—slightly negative versus strongly negative have completely different meanings.
Does anyone build a strategy specifically based on negative funding rates? I’d like to ask how to filter them. Not investment advice
# Funding Rate
