Perpetual Funding Rates: What They Signal About Market Conviction
Funding rates in perpetual swaps do more than balance the market - they reveal how crowded a trade is and how much conviction is real versus borrowed leverage.
Articles tagged "Derivatives"
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Daily Note · 12 Jun: Miners Squeezed, Institutions Hedging
Bitcoin held near $63,000 while two structural signals pushed in opposite directions: miner margins near capitulation levels, and options traders positioning defensively - even as BlackRock filed to list a new bitcoin income ETF.
Why a Short Squeeze Forces Shorts to Buy
A short squeeze turns short sellers into involuntary buyers. Each forced closure buys the asset, lifts price, and trips the next short's margin threshold.
How to Read Options Data for Market Direction
Put/call ratios, open interest and max pain show where real money is positioned before price moves. How to read options data for direction, step by step.
Funding Rates Explained: When Perpetual Swaps Overheat
Funding rates in perpetual swaps reveal when a market is structurally overextended - through a mechanical cost that eventually forces positions to close.
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
What happens when funding rates go extreme is mechanical, not emotional: the cost of holding forces unwinds and carry flow that move price before charts show it.