Btc funding rates

What is funding rate and why does it matter?

The Funding Rate is charged and paid every 8 hours. The time left to the next funding is displayed on the chart. When the countdown counter reaches 0, a charge/payment occurs. Therefore, if you've placed a position after the counter started, and the position was realized before the counter expired, you will neither pay nor receive the funding. Crypto funding rates Annualized BTC funding rates across major exchanges (Velo Data) (Velo Data)

Bitcoin funding rate

The on-chain landscape also hinted at something similar. The aSOPR, or Adjusted Spent Output Profit Ratio, has been on an uptrend over the past few days. In fact, a few hours ago, it just crossed the 1 threshold and it has been hovering around 1.00120. This means the coins moved are selling at a profit currently. As a sentiment and positioning tool Changes in parts of a funding rate can affect market sentiment and opportunity. Interest rates and premiums make up a funding rate. While the interest rate is often fixed, the premium can be determined by the difference between the perpetual futures price and the index price.

4. How to Check the Funding Rate

If you are SHORT you receive 0.05% of your net open position as payment.On the other hand if the funding rate was negative then the opposite would occur. It is also important to consider that due to this being paid / received on net open position this can mean that leverage can enlarge these payments. It is important to note that if you are highly leveraged then it is in-fact possible to liquidate yourself in a ranging market if the funding rate is high enough. Utilising Funding Rates as an Indicator Apart from the above, it is imperative to understand what the funding rate says. The financing rate correlates strongly with the mood of the traders; when the market is bullish, the funding rate is usually positive, and the higher the rate, the more excited the market is. On the downside, if the funding rate is negative, most traders think that the market is going to fall. However, this is just a guide and the crowd is not always right in this regard.

Crypto funding rates

0.00% Connect your wallet BTC: All Exchanges Funding Rates Chart Image: CryptoQuant