Funding (8h Rates)

Overview

Funding Rates are a mechanism unique to the cryptocurrency derivatives market, particularly for Perpetual Contracts. They are designed to ensure the price of the perpetual contract is kept close to the underlying reference price. The funding rate is exchanged between long and short holders.

Interpretation

The Funding Rate is interpreted as follows:

  • When the Funding Rate is positive, longs pay shorts. This usually happens when the Perpetual Contract price is higher than the Mark Price.

  • When the Funding Rate is negative, shorts pay longs. This usually happens when the Perpetual Contract price is lower than the Mark Price.

Indicator Triggers:

Funding cross up/down the level

Funding sustain above the level

In zone

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