💰 What is the funding rate? Think of it as "rent" for perps.
Basics:
1️⃣ Perps don’t expire — to keep the balance, the exchange charges funding every 8h
2️⃣ Positive funding = longs pay shorts (greed is high)
3️⃣ Negative funding = shorts pay longs (fear is high)
4️⃣ BTC cap: ±0.375% (CoinGlass); currently ~0.007%/8h — almost neutral (MacroMicro)
Funding is a sentiment dial: positive = crowded longs, negative = crowded shorts. At extremes, it fuels squeezes.
Keep an eye on the cost of carry — it quietly eats away at your funds. 🧮
$BTC
#PerpetualFutures #FundingRate #CryptoEducation
Basics:
1️⃣ Perps don’t expire — to keep the balance, the exchange charges funding every 8h
2️⃣ Positive funding = longs pay shorts (greed is high)
3️⃣ Negative funding = shorts pay longs (fear is high)
4️⃣ BTC cap: ±0.375% (CoinGlass); currently ~0.007%/8h — almost neutral (MacroMicro)
Funding is a sentiment dial: positive = crowded longs, negative = crowded shorts. At extremes, it fuels squeezes.
Keep an eye on the cost of carry — it quietly eats away at your funds. 🧮
$BTC
#PerpetualFutures #FundingRate #CryptoEducation