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Derivatives

Funding Rate

Funding rate of the perpetual for each funding period, showing whether longs or shorts are paying to hold their positions.

Funding Rate on BTCUSDT 1h (Binance), with only this indicator on.
Funding Rate on BTCUSDT 1h (Binance), with only this indicator on.

How to read it

  • Positive funding: longs pay shorts, the market leans long.
  • Negative funding: shorts pay longs, the market leans short.
  • Extreme readings show crowded positioning that can unwind sharply.

Good to know

  • Drawn in its own pane below the chart.
  • The length of a funding period depends on the venue.

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