Funding rates = the cost to long or short in perpetual futures.
đ˘ When funding rates go UP(+ve):
Longs pay shorts.
Market is bullish, too many people betting price will rise.
Could signal overheatingâpullback possible.
âWhy they rise:
Excessive long positions.
Positive sentiment or breaking news.
Price trades above spot value.
đ Watch funding for cluesâdonât get caught on the wrong side!
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