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 positive or negative funding rates means?

Firstly, the fluctuation in funding rates signifies the liquidity and activity of market orders. The larger the market order volume, the faster the changes in both positive and negative funding rates.

When the funding rate increases in either the positive or negative direction, it means that there is a significant bearish sentiment and a high number of market orders for short positions. This usually does not have a substantial impact on mainstream cryptocurrencies, but it may follow a pattern of change for some altcoins such as -0.5, -0.75, -1, -1.5, -2. In extreme market conditions with significant fluctuations in funding rates, exchanges generally make timely adjustments (such as updating the leverage and margin levels of a particular coin's perpetual contract) to protect user interests.

Simultaneously, in situations where the funding rate is very high, arbitrage traders and market makers engaging in reverse operations may enter the market a few minutes before the funding settlement point and close their positions to earn profits as soon as the settlement occurs. Users should pay attention to the changes in funding rates during their trading process.

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