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Negative Funding

Negative funding describes a funding rate below zero. In the common perpetual futures model, traders holding short positions pay traders holding long positions when funding is negative.

Why it matters to you

Negative funding can indicate stronger demand for leveraged short exposure or conditions pushing the perpetual contract below its reference market. But negative funding does not guarantee that price will rise. Like positive funding, it should be interpreted alongside price, open interest, volume and broader market conditions.

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