What factors influence the funding rate of bitcoin perpetual futures?
DarGraJan 15, 2022 · 3 years ago1 answers
Can you explain the factors that affect the funding rate of bitcoin perpetual futures? How do these factors impact the funding rate and what are the implications for traders?
1 answers
- Jan 15, 2022 · 3 years agoAt BYDFi, we have observed that market sentiment plays a significant role in influencing the funding rate of bitcoin perpetual futures. When there is positive market sentiment and bullish expectations for bitcoin, the funding rate tends to be positive as traders are willing to pay a premium to hold long positions. On the other hand, when there is negative market sentiment and bearish expectations for bitcoin, the funding rate tends to be negative as traders are willing to pay a premium to hold short positions. It's important for traders to stay updated on market sentiment and adjust their trading strategies accordingly to take advantage of potential opportunities.
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