In the MoonBot terminal, the letter F will be displayed on the coin futures chart in the upper-left corner, indicating the percentage of funding (the value can be positive or negative and vary according to data from the exchange).
Funding is a mechanism used in perpetual futures markets to keep futures prices close to the price of the underlying asset.
It works as follows:
Positive funding: when the futures price is higher than the spot price, and then traders with LONG positions pay traders with SHORT positions. This encourages traders to open SHORT positions, which leads to a decrease in the futures price.
Negative funding: when the futures price is lower than the spot price, and then traders with SHORT positions pay traders with LONG positions. This encourages traders to open LONG positions, which leads to an increase in the futures price.
Fundraising rates are usually calculated and paid at regular intervals (for example, every 8 hours: at 00:00, 08:00 and 16:00 UTC), and their values may change depending on market conditions. Some exchanges may introduce other intervals for the payment of funding, for example, every hour, every 2 hours, every 4 hours.
It is important to keep in mind that the bids may vary for different platforms and tools, so it is important to take them into account when planning your strategies.
