Funding rate
The funding rate is a periodic payment between long and short traders on perps that keeps the perp price near the spot price.
Why it matters
Very high positive funding means many traders are leveraged long, which can precede a flush.
See what top traders holdRelated terms
Perpetual futures (perps)Perps are futures contracts with no expiry date that let traders bet on prices going up (l…Open interestOpen interest is the total value of futures or perp positions still open.…
Written by the VaultX AI team. Educational only, not investment advice.
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