Crypto traders say negative funding rates are buy signals, but are they?
June 25, 2021
Crypto Nanobot
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Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. This fee ensures there are no exchange risk imbalances. Even though buyers’ and sellers’ open interest is matched at all times, leverage can vary, and when buyers (longs) are demanding more leverage, the funding rate turns positive. Thus, they […]
