Funding is a cost signal, not a direction signal.
A positive funding rate generally means longs are paying shorts. A negative rate generally means shorts are paying longs. That tells you how the perpetual contract is positioned; it does not tell you that price must reverse.
A strong workflow is simple: compare funding with price structure, volume, and the broader market. If funding is extreme but price has not confirmed a reversal, patience is information.
Question for traders: do you check funding before price, after price, or only when a position is already open? Reply BEFORE, AFTER, or NEVER.
This is educational market commentary, not financial advice. Futures involve leverage, liquidation risk, slippage, funding costs, and the possibility of losing your entire margin. Make your own decision and trade only what you can afford to lose.
#BinanceFutures #CryptoEducation #TradingBasics #FundingRate
A positive funding rate generally means longs are paying shorts. A negative rate generally means shorts are paying longs. That tells you how the perpetual contract is positioned; it does not tell you that price must reverse.
A strong workflow is simple: compare funding with price structure, volume, and the broader market. If funding is extreme but price has not confirmed a reversal, patience is information.
Question for traders: do you check funding before price, after price, or only when a position is already open? Reply BEFORE, AFTER, or NEVER.
This is educational market commentary, not financial advice. Futures involve leverage, liquidation risk, slippage, funding costs, and the possibility of losing your entire margin. Make your own decision and trade only what you can afford to lose.
#BinanceFutures #CryptoEducation #TradingBasics #FundingRate
