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Ether Perpetual Funding Rates Track Payments Between Traders

Ether Perpetual Funding Rates Track Payments Between Traders

Photo: TokenPost

On OKX, a positive rate transfers payment from long holders to short holders; a negative rate reverses that direction. At 0.00%, no funding fee is settled. The payment mechanism helps keep a perpetual contract’s mark price aligned with its spot index. A funding rate describes the balance of payments in that derivatives contract, but it does not show which direction Ether’s spot price will take. Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.

Source: TokenPost

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