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Author Topic: Is there a way to know if the next funding rate is going to be a plus or minus?  (Read 46 times)
Bitcoin_Arena (OP)
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April 23, 2021, 12:47:56 AM
 #1

I read somewhere that when the funding rate is positive, the Long position holders pay short position holders. Likewise, when the funding rate is negative, the short position holders pay long positions holders.

But I have never seen a negative funding rate being displayed anywhere in the platforms I have ever used to trade futures like Bitmex (well before KYC If my memory serves me well) and Bybit.

When you check out Bybit's BTCUSDT's funding rates history for the past few days, I
don't see any negative value - https://www.bybit.com/data/basic/linear/funding-history?symbol=BTCUSDT

Am I missing something?

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April 23, 2021, 12:59:55 AM
 #2

I've assumed it's a positive rate for one and 0 for the other (one pays fees, one doesn't).
It could be that the two are an inverse though so that one is positive and one is negative (you don't actually see 2 funding rates on exchanges normally either).

Predicting the rate could be done by checking the volume/volatility at the time and checking the shorts v longs data - if these both update in realtime.
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April 23, 2021, 01:14:25 AM
 #3

You can see it here on Bitmex, there is also an indicator when like in x hours.



Most of the futures exchanges got this, just like in FTX, I am using frequently using their mobile app to trade futures, then the funding rate is shown beside the chart.
Most of the different future exchanges got different funding rates too, maybe the link you provided for Bybit funding rate history is something like they total all of the exchanges and average it.

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April 23, 2021, 01:46:27 AM
 #4

I've assumed it's a positive rate for one and 0 for the other (one pays fees, one doesn't).
It could be that the two are an inverse though so that one is positive and one is negative (you don't actually see 2 funding rates on exchanges normally either).

Predicting the rate could be done by checking the volume/volatility at the time and checking the shorts v longs data - if these both update in realtime.
I sort of expected it to be displaced in away that it's negative (since the shorts are going to pay longs) or vice versa depending on the live market conditions. Also, I expected the funding rate history to show that at this time shorts paid longs therefore the funding rate was negative, instead of just a positive percentage throughout. One can not tell which particular time the shorts paid the longs. I hope you get what I mean  Wink





>>snip<<
Yeah, it's displayed on the bybit charts too. However, we don't get to know if the shorts paid/are going to pay the longs or the longs paid/are going to pay the shorts through the "+" or "-" sign on the funding rate figure because they never show it.

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April 23, 2021, 03:12:27 AM
 #5

I don't think it is easy to predict anything especially cryptocurrency market.

Funding rates are difficult to predict and if you can predict it, you can predict bitcoin price. You can check two pages on Viewbase but I don't think they can help you.

Margin rate
Perpetual Swap Predicted Funding Rates

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