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![jani_alish92095 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1856334825978048512.png) ChainQueen 👑 [@jani_alish92095](/creator/twitter/jani_alish92095) on x 1455 followers
Created: 2025-07-20 15:25:44 UTC

Funding Rates Explained Simply 💡

If you’re trading perpetual contracts on @dYdX funding rates are a key concept to understand Here’s a quick breakdown

🔍 What Are Funding Rates?

Funding rates are periodic payments between long and short traders
Their purpose? To keep the price of perpetual contracts aligned with the spot market

📈 If the Funding Rate is Positive
→ Longs pay shorts
→ This means demand is higher for long positions (bullish sentiment)

📉 If the Funding Rate is Negative
→ Shorts pay longs
→ This shows more demand to short the market (bearish sentiment)

💡 Why It Matters

Ignore funding rates and they’ll quietly drain your profits
Smart traders use them to time entries exits or even earn passive yield by holding

🎥 Watch this quick explainer by @dYdX to learn more
🔗

Master this concept and level up your perp trading instantly
#dYdX #FundingRates #DeFi

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**Related Topics**
[rates](/topic/rates)

[Post Link](https://x.com/jani_alish92095/status/1946954686134710684)