Funding Rate

The funding rate is a crucial indicator used in futures markets to maintain market balance. It represents the periodic payments (typically every 8 hours) made between long and short positions in perpetual futures contracts. The purpose is to keep the futures price aligned with the spot price and prevent excessively leveraged positions from disrupting market stability.

If the funding rate is positive, long position holders pay short position holders. This indicates that demand for long positions is stronger and investors generally expect prices to rise. Conversely, when the funding rate is negative, short positions pay long positions, usually signaling increasing bearish expectations and rising selling pressure in the market.

The funding rate is used not only to gauge market direction but also to understand investor behavior and detect overheated market conditions. For example, unusually high funding rates may indicate intense speculative activity and the potential for short-term price corrections. Low or negative rates, on the other hand, often reflect heightened fear in the market, but they may also present buying opportunities.

The Funding Rate Table on this page allows you to track real-time funding rates for BTC, ETH, SOL, XRP, and many altcoins across major exchanges such as Binance, Bybit, OKX, Kraken, and BitMEX. Investors can combine this data with other technical indicators to develop more informed strategies and gain an advantage in anticipating market movements.