Funding overheat
Coins where the fee between longs and shorts is heavily skewed - positions are concentrated on one side. Often precedes a reversal against the majority.
About this section
This section shows coins where the payment between longs and shorts has reached extreme values. Funding is the financing rate on Binance perpetual futures: every eight hours one side of the market pays the other so that the contract price stays close to spot.
A positive rate means longs dominate: buyers pay sellers. A negative rate means shorts dominate. The further the rate is from zero, the more skewed positioning is, and the more expensive it becomes for the paying side to hold the trade.
Extreme funding is not an entry signal in itself. It shows that the market is overheated on one side, and any move against the crowd hits harder than usual, because the crowded side starts getting closed by force.
What the bot looks for
Funding is the payment between longs and shorts. A strong skew (all positions concentrated on one side) is an indicator of tension: one side is overloaded, the risk of a sharp move is higher.
Funding is a payment one side of the market regularly sends to the other so that the perpetual futures price stays close to spot. When the rate reaches extremes, it means too many participants have piled into one side and holding the position is getting expensive for them.
Frequently asked questions
It is a regular payment between buyers and sellers of a perpetual future. It keeps the contract price from drifting away from spot. The side with more participants pays.
Longs pay shorts. A positive rate means there are more buyers and they are willing to pay to hold the position. When the rate is negative, shorts pay.
That positioning is heavily skewed to one side. It does not mean price will reverse immediately, but a move against the crowded side is usually sharper than normal.
On Binance it settles every eight hours. The section shows both the current rate and the time until the next settlement.