Glossary ยท Derivatives
Funding Rate
Periodic payment between long and short perpetual futures traders to anchor the contract to spot.
Definition
The funding rate is a periodic payment (typically every 8 hours) exchanged between long and short perpetual futures traders. When the perpetual price trades above spot, longs pay shorts; when below, shorts pay longs. Positive funding signals a crowded long book and can precede reversals; sustained negative funding signals excess shorts. Spectre AI tracks funding rates across major venues alongside open interest and liquidation data.
See this concept live in Spectre AI: /traders-corner