🌶️ CRYPTO TRADERS: STOP TREATING FUNDING RATES LIKE A BUY/SELL BUTTON.
Positive funding generally means longs pay shorts. Negative funding generally means shorts pay longs, subject to the contract’s rules.
But extreme funding doesn’t automatically mean reversal.
A crowded position can remain crowded while price continues trending.
Read funding alongside:
• Open interest
• Price structure
• Liquidation data
• Spot demand
• Market regime
Positioning data is context, not a crystal ball.
🔥 Do you use funding rates as a filter, a trigger, or neither?
#fundingrate #Openinterest #PerpetualFutures #DerivativesTrading #BinanceSquare
Positive funding generally means longs pay shorts. Negative funding generally means shorts pay longs, subject to the contract’s rules.
But extreme funding doesn’t automatically mean reversal.
A crowded position can remain crowded while price continues trending.
Read funding alongside:
• Open interest
• Price structure
• Liquidation data
• Spot demand
• Market regime
Positioning data is context, not a crystal ball.
🔥 Do you use funding rates as a filter, a trigger, or neither?
#fundingrate #Openinterest #PerpetualFutures #DerivativesTrading #BinanceSquare