Crypto Funding Rate Explained
Funding rates help show whether perpetual futures positioning is crowded. Positive funding often means longs pay shorts, but it is not a standalone short signal.
Practical interpretation
Use this metric as one part of a wider process that includes structure, liquidity, derivatives, spot participation, risk and invalidation. No single indicator should create an A-grade setup by itself.
Common mistake
Traders often confuse context with confirmation. The terminal is designed to separate a possible scenario from an actionable, confirmed setup.
Educational content only; not financial advice.