Indicator Notes | $GTC | Funding Rate -0.25% | Shorts Pay
First, the definition: When the contract price is higher than the spot price, the funding rate is usually positive and longs pay. When it’s lower than the spot price, the rate is often negative and shorts pay.
A common way to read it: When comparing funding rates, convert them to the same settlement interval. The same rate means a contract that settles every hour will settle more times per day.
Unusually high or low readings often signal greater volatility. That’s when you should reduce leverage rather than add to your position.
For market reference only. Make your own trading decisions.
First, the definition: When the contract price is higher than the spot price, the funding rate is usually positive and longs pay. When it’s lower than the spot price, the rate is often negative and shorts pay.
A common way to read it: When comparing funding rates, convert them to the same settlement interval. The same rate means a contract that settles every hour will settle more times per day.
Unusually high or low readings often signal greater volatility. That’s when you should reduce leverage rather than add to your position.
For market reference only. Make your own trading decisions.