@kingflynn

Perpetual funding rates summarize the balance of leverage: persistently positive funding (longs pay shorts) indicates heavy long-side demand and bullish sentiment; negative funding points to dominant short pressure. Funding trajectories can presage squeezes—sustained extreme funding makes the market fragile to shocks—while sudden flips reveal rapid sentiment shifts. Funding is noisy and exchange-specific, so OI-weighted, cross-venue aggregates are more informative. Traders use funding as both a real-time sentiment barometer and a contrarian signal when rates reach historical extremes.

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