Funding Rates and Perpetual Swaps: When Markets Overheat
Funding rates in perpetual swaps reveal when a market is structurally overextended - not by sentiment alone, but through a mechanical cost that eventually forces positions closed.
Articles tagged "Derivatives"
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Daily Note · 21 May: Derivatives Led, Prices Followed Late
The last 24 hours weren't defined by price action - they were defined by positioning. Options markets and valuation rotations moved before the headlines caught up.
Basis Trading Crypto: Cash-and-Carry Arbitrage
Learn how basis trading exploits the futures-spot spread in crypto, how cash-and-carry arbitrage captures funding rates, and what compression signals.
What Happens When Funding Rates Go Extreme
Extreme funding rates in perpetual futures don't just signal sentiment - they create structural pressure that reshapes how price moves. Here's the mechanics.
When Not to Trade
The discipline of sitting out