What determines funding rate?
The funding rate is determined by two components: the interest rate and the premium. The interest rate component is a fixed rate that is assumed to be higher for holding cash
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The funding rate is determined by two components: the interest rate and the premium. The interest rate component is a fixed rate that is assumed to be higher for holding cash
Read MoreIn perpetual futures contracts, a high funding rate for Bitcoin refers to a rate that exceeds the baseline rate of 0.01%. Generally, the maximum upper limit for Bitcoin funding rates is
Read MoreA negative funding rate means that short positions in perpetual futures contracts must pay funding to long positions. This typically occurs when the price of the perpetual futures contract is
Read MoreFunding rate arbitrage can be divided into two types: Funding rate arbitrage between spot and perpetual: Funding rate arbitrage between spot and perpetual contracts refers to simultaneously executing two trades
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