Current funding rate for $IOTX : -0.302% (settled every 8 hours); shorts pay.
Let’s use this figure to break down how funding rates work.
When the funding rate is positive, longs pay those holding short positions; when it’s negative, the reverse is true: shorts pay those holding long positions.
Funding rates are generally best viewed alongside open interest and price: a very high rate combined with a sharp rise in open interest usually indicates higher leverage.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.
Let’s use this figure to break down how funding rates work.
When the funding rate is positive, longs pay those holding short positions; when it’s negative, the reverse is true: shorts pay those holding long positions.
Funding rates are generally best viewed alongside open interest and price: a very high rate combined with a sharp rise in open interest usually indicates higher leverage.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.