Funding rates show who's crowded. Right now nobody is.
On a perpetual futures contract, longs and shorts pay each other every 8 hours to keep the perp close to spot. Positive funding: longs pay shorts. Negative: shorts pay longs.
Funding this morning, per 8 hours:
- $BTC +0.0051%
- $ETH +0.0048%
- BNB: 0%
- $SOL -0.0035%
- ZEC: -0.0040%
The common default is 0.01%. BTC and ETH sit at about half of that. SOL and ZEC are slightly negative, so shorts pay a little.
What it costs: a 10,000 USDT BTC long pays about 0.51 USDT every 8 hours at this rate. Small. Funding turns into a signal when it gets extreme, like 0.05% or more. Then one side is paying hard to stay in, and that side tends to get squeezed.
At these numbers there's no crowd to squeeze either way. A real move from here needs real spot buying or selling.
Do you check funding before you open a perp trade, or only after a big move?
On a perpetual futures contract, longs and shorts pay each other every 8 hours to keep the perp close to spot. Positive funding: longs pay shorts. Negative: shorts pay longs.
Funding this morning, per 8 hours:
- $BTC +0.0051%
- $ETH +0.0048%
- BNB: 0%
- $SOL -0.0035%
- ZEC: -0.0040%
The common default is 0.01%. BTC and ETH sit at about half of that. SOL and ZEC are slightly negative, so shorts pay a little.
What it costs: a 10,000 USDT BTC long pays about 0.51 USDT every 8 hours at this rate. Small. Funding turns into a signal when it gets extreme, like 0.05% or more. Then one side is paying hard to stay in, and that side tends to get squeezed.
At these numbers there's no crowd to squeeze either way. A real move from here needs real spot buying or selling.
Do you check funding before you open a perp trade, or only after a big move?