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fundingrates

A collection of 8 issues

Perpetual Swap Funding Rates: Mechanics, Arbitrage Strategies, and Risk Management for Crypto Traders

Introduction: Why Funding Rates Matter Perpetual swaps have become the go-to derivative for crypto traders who want to express directional views without worrying about contract expirations. The glue that keeps these perpetual products anchored to the underlying spot price is the funding rate, a periodic fee exchanged between long and

Cryptocurrency Short Selling Essentials: Borrowing Procedures, Funding Rate Implications, and Risk Mitigation Strategies

Introduction Short selling has emerged as a powerful tool for cryptocurrency traders who want to profit from downward price movements or hedge existing long exposure. Yet, despite its popularity on social media, the mechanics, costs, and risks of crypto shorting are often misunderstood. This article breaks down the essentials you

Perpetual Swap Funding Rates in Cryptocurrency: Calculation Formulas, Market Sentiment Insights, and Tactical Trading Applications

Introduction Perpetual swaps, or "perps," have become the most popular derivative product on cryptocurrency exchanges, enabling traders to take leveraged long or short positions without the fixed expiries of traditional futures. The mechanism that keeps a perpetual contract’s price tethered to the spot market is the periodic

Perpetual Swap Funding Rates Explained: Calculation Mechanics, Arbitrage Opportunities, and Risk Management Essentials

Introduction: Why Funding Rates Matter Perpetual swap contracts have become the instrument of choice for crypto traders who want to gain leveraged exposure without worrying about expiry dates. Yet, beneath their seemingly simple exterior lies a critical mechanism known as the funding rate. Understanding how funding rates are calculated, how

Cryptocurrency Perpetual Futures Funding Rates: Calculation Methods, Arbitrage Strategies, and Risk Management Essentials

Introduction Perpetual futures are the backbone of modern crypto trading desks because they offer high leverage, deep liquidity, and no expiry dates. Yet the invisible heartbeat that keeps these markets in line with spot prices is the funding rate. Understanding how funding is calculated, how it opens arbitrage windows, and

Crypto Perpetual Swaps Masterclass: Funding Rates, Basis Strategies, and Leverage Risk Controls for Sustainable Futures Trading

Introduction: Why Perpetual Swaps Dominate Crypto Derivatives Perpetual swaps have eclipsed traditional futures to become the most traded product in the cryptocurrency derivatives market. Their popularity stems from the absence of an expiry date, high leverage options, and 24/7 liquidity. Yet the very features that make perpetuals attractive can

Perpetual Futures Trading Fundamentals: Funding Rates, Basis Spreads, and Liquidation Risk Control

Introduction to Perpetual Futures Trading Perpetual futures contracts have become the most popular crypto derivatives instrument, providing traders with leveraged exposure to Bitcoin, Ethereum, and a growing list of alt-coins. Unlike traditional futures, perpetuals never expire, allowing positions to be held indefinitely. This structural twist creates unique mechanics—funding rates,

Crypto Perpetual Futures: Funding Rates, Leverage, and Risk Management Essentials

Introduction to Crypto Perpetual Futures Perpetual futures have become one of the most popular instruments on cryptocurrency exchanges, offering traders exposure to digital assets without an expiration date on their contracts. Unlike traditional futures that settle on a fixed schedule, perpetual contracts trade continuously, allowing positions to be held indefinitely