Funding Rate Explained: How to Spot Crowds in Perpetual Futures

The Funding Rate indicator on Tradingview helps you understand positioning in perpetual futures markets by showing which side of the market is paying to hold their positions. — Try on Supercharts ➡️ https://www.tradingview.com/chart/ — Key points: Reveals whether longs or shorts are paying and gives insight into market sentiment and positioning. Extreme funding levels can signal overcrowded long or short positions, increasing the risk of reversals or squeezes. Using funding alongside open interest helps confirm whether new positions are entering the market and where pressure is building. — Explore our educational articles: - Funding rate ➡️ https://www.tradingview.com/support/solutions/43000762390/ - TradingView indicators: simple steps to get started ➡️ https://www.tradingview.com/support/solutions/43000543626/ - Getting started with TradingView ➡️ https://www.tradingview.com/support/getting-started/ — Timestamps: 00:00 Intro 00:25 Add Indicator 00:45 Settings 02:50 What Is the Funding Rate 04:05 Reading Price and Funding rate 05:05 Combining with Open Interest Indicator 05:35 Add Crypto Open Interest 06:00 Hedging Example 06:50 High and Low funding 07:30 Receiving Funding 07:45 Summary — @TradingView is the only official TradingView YouTube channel. TradingView does not provide brokerage services. All the information in this video is for educational purposes only and does not constitute financial, trading, or investment advice. — For more updates: Try TradingView ➡️ https://www.tradingview.com/ Read our blog ➡️ https://www.tradingview.com/blog/ Explore trading ideas ➡️ https://www.tradingview.com/ideas/ Follow us on X ➡️ https://x.com/tradingview/ Subscribe ➡️ http://youtube.com/@TradingView?sub_confirmation=1 — Get $15 for every friend you invite to join our globally-minded community — https://www.tradingview.com/share-your-love/ — #Trading #TechnicalAnalysis #Cryptocurrencies #FundingRate #Liquidity