Two interpretations with different implications:
a) you're paid to go long so lots of people will buy
b) the equilibrium is implying people _need_ to get paid to go long, so they must think things are going down
Conversation
Would analyzing funding rate in conjunction with the contract's premium over or under the spot price/index potentially yield a concrete indicator? (And yes, I know for perps there's not necessarily supposed to be one).
1
1
Replying to
Theoretically funding rate = premium, but yeah really you should be combining them if you want to adjust for the BitMEX delay in funding