$ANIME Current funding rate: -0.293% (settled every 4 hours). Shorts pay, which works out to an annualized rate of about 641.3% if simply extrapolated from this period.
Let's break that number down.
Perpetual contracts have no delivery date. Funding rates keep the contract price anchored to the spot price: longs and shorts pay each other a fee at regular intervals.
The same reading can mean very different things in different market conditions, so don't blindly apply a rule of thumb.
Let's break that number down.
Perpetual contracts have no delivery date. Funding rates keep the contract price anchored to the spot price: longs and shorts pay each other a fee at regular intervals.
The same reading can mean very different things in different market conditions, so don't blindly apply a rule of thumb.