Lets talk about Funding Rates

It is the cost of having an open position in a perpetual swap contract.
It is calculated by the difference between the price of the perpetual swap contract and price of a spot-based index.
If funding is positive, Open long positions pay funding while the open short positions receive funding.
If funding is negative, the open short positions pay funding and open long positions receive funding.

Perpetual contract are different to standard futures contracts because there is no expiry or rollover mechanism in place. #contentstar