A Trader's Guide to Crypto Funding Rates
1 min read
Explore funding rates crypto and learn how to read funding data, spot signals, and build practical trading strategies.
Heard of crypto funding rates? They're the invisible hand keeping crypto derivatives in check. These are small payments between traders in perpetual futures markets, ensuring a contract's price stays close to the asset's actual spot price.
When the market is optimistic and traders go long (betting on a price increase), the funding rate turns positive. Longs pay shorts. If fear takes over and traders short (betting on a price drop), the rate flips negative. Shorts pay longs.
What Are Crypto Funding Rates
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