What does a funding rate tell you about $BTC perpetual futures?
Funding is a periodic payment between long and short positions that helps keep the perpetual contract near the spot price. When the rate is positive, longs pay shorts; when negative, shorts pay longs.
It can reveal positioning and change the cost of holding a trade, but it is not a price forecast. Compare funding with spot price, volume, and open interest, and check when the next payment is due.
What do you look at alongside funding? #Bitcoin #CryptoEducation
Funding is a periodic payment between long and short positions that helps keep the perpetual contract near the spot price. When the rate is positive, longs pay shorts; when negative, shorts pay longs.
It can reveal positioning and change the cost of holding a trade, but it is not a price forecast. Compare funding with spot price, volume, and open interest, and check when the next payment is due.
What do you look at alongside funding? #Bitcoin #CryptoEducation