Funding Rates 101 -part 2

Funding rates = the cost to long or short in perpetual futures.

🔴 When funding rates go NEGATIVE:

Shorts pay longs.

Market is bearish, most traders betting price will drop.

Can signal fear or overselling—bounce incoming?

❓Why they drop:

Heavy shorting pressure.

Bearish sentiment or bad news.

Price trades below spot value.

now as $ALPACA coin has -2% funding, when countdown becomes 0:00 short position's holders will pay long position holders.

amount = 2x(how much leverage)x margin usdt

👀 Sometimes, negative rates = opportunity. Stay sharp.

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