Funding Process
Funding Rate — Funding consists of regular payments between buyers and sellers, according to the current funding rate. When the funding rate is above zero (positive), traders that are long (contract buyers) have to pay the ones that are short (contract sellers). In contrast, negative funding rates mean that short positions pay longs. When a perpetual futures contract is trading higher than the spot markets, long positions have to pay shorts due to a positive funding rate. Such a situation is exp...