Recently, a group of friends have been asking me about the funding rate in contracts.


The most basic way to judge the long and short forces is Water Brother's explanation:
The funding fee mainly functions to constrain the spot price within the exchange from diverging from the contract price.
The funding rate is not a fee but a settlement between the long (buyers) and short (sellers).
When the funding rate is positive, the contract price > spot price, long > short, indicating a bullish (strong buying) sentiment.
When the funding rate is negative, the contract price <
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