Many questions about funding in the comments, let's clarify it in plain language.

Funding is essentially a fee between traders on futures. No money goes to the exchange; it's just that those in the minority pay those in the majority. It's simply a mechanism to balance the market.

When the funding is positive — it means that the long traders are the clear majority, and they pay the shorts. Conversely, if the funding is negative — the shorts have overextended their positions, and they are paying the longs. Everything makes sense.

Why is this needed at all? The main goal is to prevent the futures price from diverging too much from the spot price. When one type of position dominates, funding encourages people to open opposite positions. This keeps the market in balance.

For beginners, it's important to understand a few points. First, funding is not deducted constantly but periodically — usually every few hours. Second, even if the price doesn't move at all, you can lose or earn money solely from funding. And third — when funding is very high, it signals that the crowd has already entered the position, which often acts as an opposite indicator.

In short: funding is a fee for when the majority leans too far in one direction. Don't ignore this factor in your calculations.