Funding Rates
What Is Funding Rates?
Periodic payments between long and short traders in perpetual futures contracts. Positive rates mean longs pay shorts; negative rates mean shorts pay longs. Keeps perpetual prices anchored to spot.
How to Interpret
Extremely positive funding = crowded long positioning, vulnerable to long squeeze. Negative funding during uptrends = healthy, not overleveraged. Persistently negative = bearish positioning.
More Derivatives Metrics
Futures Volume
The total daily trading volume of Bitcoin futures contracts across all exchanges. Measures the level of speculative activity and leveraged trading.
Futures Open Interest
The total number of outstanding futures contracts across all exchanges. Represents the total amount of capital committed to Bitcoin futures positions.
Futures Basis
The annualized spread between Bitcoin futures prices and the spot price. Represents the cost of carry and reflects market sentiment about future prices.
Term Structure
The curve showing futures contract prices across different expiration dates. Shows the relationship between spot price and forward delivery prices at various maturities.