Funding Rate
Periodieke vergoeding tussen long- en short-traders.
Funding rates are the mechanism that keeps perpetual swap prices aligned with the spot price. When the perp trades above spot, longs pay shorts, incentivising people to go short and push the price back down. When the perp trades below spot, shorts pay longs.
Funding is typically settled every eight hours on most exchanges, though some use hourly intervals. The rate is a combination of an interest-rate component and a premium/discount component. Extremely positive funding means the market is heavily long; extremely negative means heavily short.
Sustained high positive funding rates during a rally can indicate overheated long positioning that often precedes a sharp correction. Traders monitor funding as a contrarian indicator: extreme readings in either direction suggest crowded trades that may unwind violently.
Funding rates expose crowd positioning in real time. Extreme readings are a powerful contrarian signal that often precedes sharp reversals or liquidation cascades.
Hoe CryptoRadar24 het volgt
CryptoRadar24 displays current and historical funding rates for every futures-enabled asset, with alerts when funding reaches extreme levels that may signal an imminent move.
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FAQ
Who pays and who receives funding?
When the rate is positive, longs pay shorts. When negative, shorts pay longs. The exchange facilitates the transfer but does not take a cut.
How often is funding settled?
Most exchanges settle every 8 hours, though some have moved to hourly funding. The frequency affects the cumulative cost of holding a position.
Can funding rates go negative?
Yes. Negative funding means shorts are paying longs, typically occurring when the market is bearish and the perp trades below spot.
How should traders use funding rates?
As a sentiment gauge. Persistent extreme funding suggests a crowded trade. Many traders use it as a contrarian indicator to anticipate reversals.