Positive funding is NOT a bullish forecast. 🧭
In crypto perpetual futures, positive funding generally means longs pay shorts; negative funding reverses that flow. It helps keep the contract near spot—not predict the next candle.
Before trading:
• Check the funding interval: rates are not always quoted for the same period.
• Estimate the cost over your intended holding time. Rates can change.
• Treat extreme funding as a crowding clue, not a standalone reversal signal.
Buying spot and shorting a perp may collect funding, but it is not free yield: funding can flip, the hedge can diverge, and the leveraged leg can be liquidated. Fees and exchange risk still matter.
Read the mechanics before trading the signal.
#CryptoEducation #FundingRates #RiskManagement
In crypto perpetual futures, positive funding generally means longs pay shorts; negative funding reverses that flow. It helps keep the contract near spot—not predict the next candle.
Before trading:
• Check the funding interval: rates are not always quoted for the same period.
• Estimate the cost over your intended holding time. Rates can change.
• Treat extreme funding as a crowding clue, not a standalone reversal signal.
Buying spot and shorting a perp may collect funding, but it is not free yield: funding can flip, the hedge can diverge, and the leveraged leg can be liquidated. Fees and exchange risk still matter.
Read the mechanics before trading the signal.
#CryptoEducation #FundingRates #RiskManagement