$T Current funding rate: -0.0511% (settled every 1 hour); shorts pay.
The funding rate usually reflects quickly which way positions are piling up.
Perpetual contracts have no expiry date. Funding rates keep their prices anchored to spot prices: longs and shorts pay each other a fee at regular intervals.
The rate only indicates the long-short bias in the contract market; it doesn't represent spot demand.
Before trading with leverage, think about whether you can withstand the worst-case scenario, then consider what the signals are saying.
I often get it wrong too—don't take this as advice.
The funding rate usually reflects quickly which way positions are piling up.
Perpetual contracts have no expiry date. Funding rates keep their prices anchored to spot prices: longs and shorts pay each other a fee at regular intervals.
The rate only indicates the long-short bias in the contract market; it doesn't represent spot demand.
Before trading with leverage, think about whether you can withstand the worst-case scenario, then consider what the signals are saying.
I often get it wrong too—don't take this as advice.