$ARC ｜Funding rate -0.103%｜Shorts pay
Before looking at fund flows, understand the funding rate.
Perpetual contracts have no expiry date. The funding rate helps keep the contract price close to the spot price: longs and shorts periodically pay each other a fee.
A significantly positive rate is often interpreted as overheated bullish sentiment, with many traders using leverage to go long; a deeply negative rate suggests the opposite.
Don’t abandon your original plan based on a single indicator, and never gamble with borrowed money.
Before looking at fund flows, understand the funding rate.
Perpetual contracts have no expiry date. The funding rate helps keep the contract price close to the spot price: longs and shorts periodically pay each other a fee.
A significantly positive rate is often interpreted as overheated bullish sentiment, with many traders using leverage to go long; a deeply negative rate suggests the opposite.
Don’t abandon your original plan based on a single indicator, and never gamble with borrowed money.