Order Flow Getting Started Tutorial
Large-amount entrusted orders (main orders)
Liquidation Heatmap
Liquidation Map
Basic introduction to order flow
What is order flow?
Order Flow Getting Started Tutorial
Order flow
What is the long-short position accounts ratio?
Manual of contract data for newer
Risk management in contract trading
Commonly used indicators for contract data
Costs in cryptocurrency trading
What positive or negative funding rates means?
Arbitrage opportunities in the cryptocurrency market
What are terms mark price、last price and estimated liquidation price?
What determined funding rate?
Basis and premium
Liquidation and delivery
What are USDT contract and USD contract?
What difference between open interest and trading volume?
Differences between cryptocurrency perpetual contract trading and leverage trading
How to keep balance for price in perpetual contracts and spot?
What categories of cryptocurrency derivatives?
What are Golden Cross and Death Cross, and how are they used in trading?
What is liquidity
What is VWAP indicator and how to use it in cryptocurrency trading?
What is the RSI indicator, how to see overbought and oversold?
How to Read Order Book Data?
The Analysis and Trading Applications of Long-Short Position Ratio and Open Interest
The Significance and Application of Cryptocurrency Liquidation Data
How is funding rate calculated for cryptocurrency perpetual contracts?
How to interpret the open interest data of cryptocurrency contracts?
What is the purpose of the cryptocurrency funding rate?
What is Top trader account long/short ratio
What is exchange top trader positions long/short ratio
What is Bitcoin open interest?
What is perpetual contract funding rate?
What is BTC liquidation or what is cryptocurrency liquidation?

What determined funding rate?

The rules for determining cryptocurrency funding rates vary depending on the exchange or platform, but generally include the following aspects:

  1. Market Interest Rate: The baseline for cryptocurrency funding rates is often the prevailing interest rate in the market. This can be a risk-free rate or other market interest rate benchmark, depending on the exchange's specifications.
  2. Position Direction: The sign and charging direction of the funding rate are determined by the traders' position direction. When the long (buyer) position ratio exceeds the short (seller) position ratio, the funding rate may be positive, and fees are charged from the shorts to the longs. Conversely, when the short position ratio exceeds the long position ratio, the funding rate may be negative, and fees are charged from the longs to the shorts.
  3. Funding Rate Calculation: The calculation method for funding rates may vary among different exchanges but generally involves factors such as contract open interest, position ratios, and market interest rates.
  4. Funding Rate Payment: Funding rates are typically settled at the end of each funding rate period, which can vary depending on the exchange's settings. Funding rate payments may be made through cash settlement or settlement in the form of the contract's underlying asset.

It is important to note that specific rules for cryptocurrency funding rates can vary across exchanges, platforms, and contracts. Traders should thoroughly understand and comply with the regulations set by their respective exchanges when participating in contract trading

Information content does not constitute investment advice, investors should make independent decisions and bear their own risks