🐋 $ARC Current funding rate: -0.0532% (settled every 4 hours); shorts pay.
The funding rate is usually the first thing to show which side capital is crowding into.
Think of the funding rate as rent for holding a position: whichever side pushes the perpetual contract price further away from spot is often the one that pays.
The rate usually returns to normal either when prices pull back or when the crowded side exits. To tell which is happening, look at how open interest moves next.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
#ARC
The funding rate is usually the first thing to show which side capital is crowding into.
Think of the funding rate as rent for holding a position: whichever side pushes the perpetual contract price further away from spot is often the one that pays.
The rate usually returns to normal either when prices pull back or when the crowded side exits. To tell which is happening, look at how open interest moves next.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
#ARC