You step into a crowded elevator, and it starts going the wrong way. To get it back to the right floor, someone has to press the button and pay for that adjustment.In crypto trading, funding works the same way. It's a periodic payment exchanged between traders holding perpetual futures positions. Without it, the contract price would quickly drift away from the spot market
In our latest article, we explain how the funding rate is calculated and what positive and negative funding rates mean.
