Comprehensive Institutional Breakdown
When funding is positive, long traders pay short traders, signaling bullish leverage saturation. When funding turns deeply negative, short traders pay longs, frequently creating short-squeeze conditions.
Carl Brent Anthony Institutional Rule
Extreme positive funding (>0.05% per 8h) warns of over-leveraged longs susceptible to a downward liquidation cascade.
Cross-Market & Execution Note
Similar in concept to overnight financing or swap fees in Forex, but recalculates dynamically every 8 hours.