The Bitcoin funding rate is a mechanism in contract trading that is used to balance the power between longs and shorts in the market. Its high and low are related to the difference between long and short positions in the market, and are usually automatically adjusted by the exchange. In contract trading, if the long positions are larger relative to the short positions, the long positions need to pay funding fees to the short positions, and vice versa. For investors, how much is the Bitcoin funding rate? And how low is the Bitcoin funding rate? Very important, this will directly affect the net profit. Generally speaking, the maximum upper limit of Bitcoin funding rate is 0.375%, and the lowest limit is -0.375%. The editor below will tell you in detail.
What is the high Bitcoin funding rate?
Generally, when the Bitcoin funding rate exceeds 0.01% of the base rate, it is considered higher. High funding rates mean long positions pay higher funding fees to short positions. This shows strong demand for long positions relative to short positions, which could cause the price of the perpetual futures contract to be higher than the price of the underlying asset.
High funding rates may also reflect bullish market sentiment, with traders optimistic about future underlying asset prices. They are willing to pay higher funding rates to maintain long positions in anticipation that the price of the underlying asset will rise.
High funding rates can be a warning sign for traders. If funding rates remain high, perpetual futures contract prices may rise unsustainably, triggering market adjustments or even collapse.
How low is the Bitcoin funding rate?
Bitcoin funding rate below -0.08% is considered a low level, which means that the short power in the current market is relatively strong. When the mark price is lower than the index price, in order to make the mark price approach the index price, the short side (put) will pay the funding rate to the long side (call) to encourage more people to go long on the perpetual contract, thereby pushing up the index price. . In this case, the funding rate will be negative.
The funding rate is only calculated based on the funds you need to pay or receive for the long or short position in the transaction, excluding any handling fees paid to the exchange. It has nothing to do with leverage, but rather your position size.
The above is the detailed content of When is the Bitcoin funding rate high or low?. For more information, please follow other related articles on the PHP Chinese website!

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The ten apps that can view the long-short data ratio in the currency circle are: 1. CoinMarketCap, providing comprehensive information; 2. Binance, trading platform, high liquidity; 3. OKX, world-leading, supports multiple trading; 4. TradingView, chart platform, rich technical analysis tools; 5. Kraken, European platform, high security; 6. Bitfinex, suitable for professional traders; 7. Bitstamp, stable and reliable; 8. Huobi, rich trading functions; 9. Coinglass, focusing on the contract market, friendly interface; 10. Delta, integrating market data, supporting long-short analysis.

The core methods of profitability in currency circle contracts include: 1. Trend tracking and band operations, driving profit through technical analysis and news surface; 2. Arbitrage and hedging strategies, using cross-platform price spreads and options hedging; 3. Reasonable use of leverage, adjusting leverage multiples according to market fluctuations; 4. Risk control, setting stop loss and take profit and managing positions.

The top ten digital currency exchanges in the world in 2025 are: Binance, OKX, Gate.io, Coinbase, Kraken, Huobi, KuCoin, Bybit, Bitstamp and Upbit. 1. Newbie/institutional users should choose Coinbase and Kraken because of their strong security and compliance and transparency. 2. High frequency/derivative traders are suitable for use with Binance, OKX and Bybit, providing low rates and high liquidity. 3. Users who explore small currencies can choose KuCoin and Gate.io, but they need to pay attention to diversifying risks. 4. Users with localization needs can choose Huobi (Asia), Upbit (South Korea) and Bitstamp (Europe).

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The special services of global virtual currency trading platforms include: 1. Comprehensive ecological platforms such as Binance and OKX, providing a variety of cryptocurrency trading pairs and ecosystems; 2. Compliance and security platforms such as Coinbase and Gemini, emphasizing regulatory compliance and user asset security; 3. Professional trading platforms such as Bitfinex and Kraken, focusing on high-leverage trading and technical support; 4. Innovative service platforms such as Crypto.com and FTX, launching innovative financial products; 5. Regional featured platforms such as Bitstamp and Huobi Global, providing localized services and compliance solutions.

When choosing a cryptocurrency exchange, priority is given to compliance, liquidity, service type and regional adaptation: 1. Compliance: Choose a platform regulated by SEC, FINCEN or the EU, such as Coinbase, Bitstamp. 2. Liquidity: Binance and OKX are suitable for large-value trading. 3. Service type: Newbie choose Coinbase, derivative traders choose Bybit or Bitfinex. 4. Regional adaptation: Asian users choose Huobi, European and American users choose Kraken.

When choosing a cryptocurrency exchange, you should consider: 1. Compliance, and give priority to platforms regulated by SEC, FINCEN or the EU, such as Coinbase, Bitstamp; 2. Liquidity, Binance and OKX are suitable for large-scale trading; 3. Service type, novices choose Coinbase, derivative traders choose Bybit or Bitfinex; 4. Regional adaptation, Asian users choose Huobi, European and American users choose Kraken.

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