RE: RE: Christmas Comes Early
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RE: Christmas Comes Early

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2y

Yeah the funding rate is weird... basically it ensures that the futures price on the perpetuals market is very closely pegged to actual spot price of the asset. When too many people are going long BTC will trade a couple hundred dollars higher on perps vs spot. The funding rate then forces longs to pay shorts more money to bring the perps price back into alignment.

@edicted: Yeah the funding | Ecency