What funding rates describe#
Perpetual-contract funding transfers can reflect the balance between long and short demand on a venue. Positive or negative funding is context, not proof that price must reverse or continue.
What open interest leaves out#
Open interest counts outstanding contracts, not a complete map of directional exposure. Venue scope, contract type, collateral and hedging relationships matter.
Liquidation and data-quality risk#
High leverage can amplify rapid moves, while API timing and venue coverage can create conflicting figures. Compare timestamp, contract definition and scope before interpreting a headline.
Sources and references#
Use these direct research and official references to verify definitions, scope and limitations.
- Fundamentals of Perpetual Futures — SSRN Electronic Journal
- Crypto carry — Bank for International Settlements
- Futures Glossary — U.S. Commodity Futures Trading Commission
Key principles#
Venue scope
Funding and open-interest values are not automatically comparable across exchanges and contract types.
No directional certainty
Crowded positioning can persist, unwind or be hedged elsewhere.
No leverage guidance
MarketPulse does not provide derivatives setups, liquidation levels or leverage instructions.