🎓 Have you seen the “funding rate” in futures and don’t know what it means? I’ll explain it in 1 minute.
Perpetual contracts don’t expire, so Binance uses funding to keep their price pegged to spot. Every 8 hours, one side pays the other:
• Positive funding ➕ → longs (buyers) pay shorts. More people are betting on prices going up.
• Negative funding ➖ → shorts pay longs. Bets on prices going down are dominating.
📌 Example using today’s data:
• $BTC : +0.005% → slightly positive, neutral.
• $WLD : −0.012% → shorts are paying; there are more bearish positions.
❌ Common mistake: treating an extreme funding rate as an automatic signal. A very high funding rate indicates a lot of leverage on one side, which can lead to cascading liquidations… but it doesn’t tell you when.
In a nutshell: funding is a barometer of sentiment in futures, not a crystal ball.
#Educación #Futuros #FundingRate #Cripto
⚠️ For informational and educational purposes only; this is not financial advice. Cryptocurrencies are volatile: do your own research and trade with caution.
Perpetual contracts don’t expire, so Binance uses funding to keep their price pegged to spot. Every 8 hours, one side pays the other:
• Positive funding ➕ → longs (buyers) pay shorts. More people are betting on prices going up.
• Negative funding ➖ → shorts pay longs. Bets on prices going down are dominating.
📌 Example using today’s data:
• $BTC : +0.005% → slightly positive, neutral.
• $WLD : −0.012% → shorts are paying; there are more bearish positions.
❌ Common mistake: treating an extreme funding rate as an automatic signal. A very high funding rate indicates a lot of leverage on one side, which can lead to cascading liquidations… but it doesn’t tell you when.
In a nutshell: funding is a barometer of sentiment in futures, not a crystal ball.
#Educación #Futuros #FundingRate #Cripto
⚠️ For informational and educational purposes only; this is not financial advice. Cryptocurrencies are volatile: do your own research and trade with caution.