What is a funding rate?
A funding rate is a regular payment between traders holding perpetual futures, which keeps the futures price near the market price.
When it is positive, long traders pay short traders, which usually means longs are crowded. When it is negative, shorts pay longs. Payments are often made every eight hours, and the cost builds up if you hold a position for a long time.
General information only, not financial advice. Investing can lose you money.