Market Notes | $RSR | Funding Rate -2% | Shorts Pay
First, the definition: When the contract price is higher than the spot price, the funding rate is usually positive and longs pay. When it is below the spot price, the rate is usually negative and shorts pay.
Next, how to read it: A return to normal funding rates generally happens either through a price correction or as the crowded side closes positions. To tell which, watch how open interest changes afterward.
All data describes market movements that have already happened; the market could turn in the opposite direction at any time.
#RSR
First, the definition: When the contract price is higher than the spot price, the funding rate is usually positive and longs pay. When it is below the spot price, the rate is usually negative and shorts pay.
Next, how to read it: A return to normal funding rates generally happens either through a price correction or as the crowded side closes positions. To tell which, watch how open interest changes afterward.
All data describes market movements that have already happened; the market could turn in the opposite direction at any time.
#RSR