Sources & further reading
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Funding Rate Tracker
Compare perpetual futures funding rates across 5 exchanges and 20 coins. Positive rates mean longs pay shorts (bullish sentiment). Negative rates mean shorts pay longs.
Funding Rate Arbitrage Opportunities
When funding rates differ significantly across exchanges, arbitrageurs can profit by going long on the exchange with lower rates and short on the one with higher rates.
Understanding Funding Rates
What Are Funding Rates?
Funding rates are periodic payments between long and short traders on perpetual futures. They keep the perpetual contract price anchored to the spot price. Rates are typically paid every 8 hours.
Positive vs Negative
Positive funding: longs pay shorts (bullish market — more demand to go long). Negative funding: shorts pay longs (bearish market — more demand to go short). Extreme rates often precede reversals.
Trading Strategy
High positive rates suggest overleveraged longs — potential for a long squeeze. High negative rates suggest overleveraged shorts — potential for a short squeeze. Use alongside liquidation data for confluence.
Funding Arbitrage
When rates differ across exchanges, traders can go delta-neutral: long on the exchange with lower funding and short on the one with higher funding, collecting the spread as profit.