What is the funding rate?

✅ Reasons for funding fee occupancy:

Contract price exceeds spot price (excessive long positions)

The market is generally bullish, strong long sentiment

Longs need to pay the funding rate to shorts to maintain their positions

📌 Summary: Market is bullish, contract premium, funding fee is positive → Longs pay

❌ Reasons for negative funding fee:

Contract price is below spot price (excessive short positions)

Market panic or downtrend, strong short sentiment

Shorts need to pay the funding rate to longs to maintain their positions

📌 Summary: Market is bearish, contract discount, funding fee is negative → Shorts pay