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Author: Admin | 2025-04-28
The difference in price). A negative funding rate means that the short holders must pay the long holders. If, on the other hand, the price of the contract is higher than the spot price, the funding rate will be positive — long contract holders must pay short contract holders. In both these instances, the funding rate promotes the opening of new positions which can bring the contract’s price closer to the spot price.Funding rate payments are made every eight hours on most exchanges, including OKX, as long as contract holders keep their positions open. Gains and losses, on the other hand, are realized at the time of daily settlement and are credited to holders’ accounts automatically.Funding rate data, as shown below, can be used to quickly assess market trends and performance over any period of time. Again, a positive funding rate tells us that the market is generally more bullish — the perpetual futures price is higher than spot prices. A negative funding rate indicates bearish sentiment, since it means the perpetual futures price is lower than the spot price.BTC perpetual futures funding rate. Source: okx.comBitcoin optionsLike Bitcoin futures, options are also derivative products that track Bitcoin’s price over time. However, unlike standard futures — where two parties agree on a date and price to buy or sell the underlying asset — with options, you literally purchase the “option” or right to buy or sell the asset at a set price in the future.Even though crypto options are newer than futures, Bitcoin options reach an all-time high of over $1 billion in 2020, in terms of Open Interest (OI). OI denotes the total value (in USD, generally) of outstanding options contracts that are yet to be settled. An increasing open interest generally indicates an inflow of fresh capital into the
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