251: Kasper Vandeloock - High School Dropout Turned Quant Trader, Entrepreneur (Pre & Post FTX Collapse)
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What Is a Funding Rate?
The actual price of for example Bitcoin what we have is a funding rate this funding rates gets calculated by the average premium on a certain time frame. On-pinance would look at the time-rated average price of that eight hours and then if it's for example positive longer switch paid shorts that difference could be used to determine how much you pay per hour. Different traders on different exchanges maybe have a desire to create exposure to a specific coin or don't want to move their capital to that other exchange so they buy more aggressively or sell more aggressively. You get these funding rate differences I see with perpetual contracts which are like future contracts without an expiry.
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