$ZIL ｜Rate -0.0516%｜Shorts pay｜Current price 0.002598
Before looking at fund flows, first understand the funding rate.
When the funding rate is positive, longs pay shorts; when it is negative, the reverse is true, and shorts pay longs.
An extreme funding rate doesn’t mean an immediate reversal. An overheated market can sometimes get even hotter for a while.
The same reading can mean very different things in different market conditions, so don’t apply a single rule mechanically.
Before looking at fund flows, first understand the funding rate.
When the funding rate is positive, longs pay shorts; when it is negative, the reverse is true, and shorts pay longs.
An extreme funding rate doesn’t mean an immediate reversal. An overheated market can sometimes get even hotter for a while.
The same reading can mean very different things in different market conditions, so don’t apply a single rule mechanically.