Funding rate
The periodic payment between holders of long and short positions in a perpetual contract.
How to read the number
Its sign shows which side is heavier: the crowded side pays, and that same pressure is what holds the contract price away from spot.
When the metric lies
In a quiet market the rate is barely noticeable; at the peak of interest it becomes the main cost of the position. Holding for weeks turns out dearer than a first look at the chart suggests.
Also known as: perpetual funding