Market Notes | $BMT | Funding Rate -0.133% | Shorts Pay
First, the definition: funding fees are settled directly between traders; they are not transaction fees collected by the exchange.
A common way to read it: funding rates should generally be considered alongside open interest and price. When the funding rate is high and open interest is surging, the market is often more crowded.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.
First, the definition: funding fees are settled directly between traders; they are not transaction fees collected by the exchange.
A common way to read it: funding rates should generally be considered alongside open interest and price. When the funding rate is high and open interest is surging, the market is often more crowded.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.