Guide to Crypto Funding Rates
1 min read
Unlock market sentiment with crypto funding rates. This guide explains how they work, how to calculate them, and how to use them in your trading strategy.
Crypto funding rates are periodic payments between traders in perpetual futures markets. Their purpose is to keep the contract's price anchored to the asset's spot price.
Think of it as the invisible force ensuring a derivative—which never expires—faithfully tracks the real-time value of the crypto it represents. It's the balancing act that keeps the entire system in equilibrium.
The Core Idea Behind Crypto Funding Rates
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