Funding Rate Overview
Indicator Explanation
Tutorial
Funding Rate is the fee set by crypto exchanges to maintain a balance
between underlying asset perpetual futures prices and spot prices. It
can generally be used to observe the balance of long and short
positions in perpetual futures market, and is also a open interest
analysis indicator.
When the funding rate is positive, it indicates that more traders are
holding long positions, and the long side pays funding fees to the
short side. Conversely, when the funding rate is negative, the short
side pays fees to the long side.
Traders can use funding rates to conduct arbitrage trading
or capture trading opportunities with abnormal rates.