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
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.
Liquidations
The forced closing of leveraged positions when margin requirements are not met. Liquidation data shows the dollar value and direction (long vs short) of liquidated positions.
Options Volume
Daily trading volume in Bitcoin options contracts. Measures the level of options market activity and can indicate hedging demand or speculative interest.
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.