Aggregated Funding Rate — Indicator by EliCobra — TradingView (2024)

Aggregated Funding Rate — Indicator by EliCobra — TradingView (1)

This funding rate indicator combines data from two of the largest cryptocurrency exchanges, BitMex and Binance, and supports USD, USDT, and BUSD currency pairs. Moreover, it covers a wide range of 31 different crypto assets to choose from, providing users with a comprehensive view of the funding rate for each asset.

The aggregation is formed by calculating the funding rate of the cryptocurrency for each perpetual chart respectively (Binance - USDT & BUSD and BitMex - USDT & USD). The calculation itself is based on each exchange's official formula, hence the reasoning behind including only 4 sources, they are currently the only ones which can be calculated this way in Tradingview.
Afterwards, it is either summed or averaged based on the user input. Additionaly, the user may choose freely which of the four sources will be included.

What is Funding Rate ?

The funding rate is the cost of holding a cryptocurrency position on a futures exchange. It is essentially an interest rate paid by the long or short position holder to the counterparty. If the funding rate is positive, longs pay shorts, and if it is negative, shorts pay longs. This rate is adjusted periodically, typically every eight hours, to ensure that the futures price of the cryptocurrency remains close to its spot price.

Utility :

The funding rate indicator can be used in a variety of ways. Traders can use it to gauge the sentiment of the market. If the funding rate is consistently positive, it suggests that there is more demand for long positions than short positions, indicating that the market is bullish. On the other hand, if the funding rate is consistently negative, it suggests that there is more demand for short positions than long positions, indicating that the market is bearish.

In addition, the funding rate indicator can be used to identify potential trading opportunities. If the funding rate is significantly higher than usual, it may indicate that longs are overpaying shorts, creating a potential arbitrage opportunity. Alternatively, if the funding rate is significantly lower than usual, it may indicate that shorts are overpaying longs, creating a potential arbitrage opportunity in the opposite direction.

Key Features

  • Aggregation type
  • 31 supported cryptocurrencies
  • Simple or Depth style options
  • Sources to aggregate

Release Notes

Added RRUNE

binancebitmexfundingrateOscillatorssentimentsentimentalanalysis

Protected script

This script is published closed-source and you may privately use it freely.

Want to use this script on a chart?

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Aggregated Funding Rate — Indicator by EliCobra — TradingView (2024)

FAQs

What is the aggregated funding rate? ›

Funding rates aggregated by exchange - represents the aggregation of all funding rates by open interest on given exchange for a given asset. Funding rates aggregated by settlement currency - represents the aggregation of all funding rates by open interest per settlement currency for a given asset.

How to use funding rate indicator? ›

How to use Funding Rate in Trading? There are four strategies that helps leverage the funding rate in crypto trading. The funding rate in crypto market serves as a valuable sentiment indicator. It determines the market psychology and behaviour and also tells whether long or short are presently more aggressive.

What is an aggregated rate? ›

Aggregate rate means an employee's annual salary calculated as an hourly rate for the rostered hours worked. Sample 1Sample 2. Aggregate rate means an hourly rate payable to the Employee that is inclusive of all shift penalties and weekend penalties.

What does it mean to aggregate funds? ›

Financial aggregation is a process in which multiple assets are bundled together, which then receive financing, or refinancing, from investors based on the future cash flows from the assets.

What does the funding rate tell you? ›

The funding rate reflects overall market sentiment. A high positive rate signals bullish sentiment, with traders willing to pay more to maintain long positions. On the other hand, a high negative rate indicates bearish sentiment, showing a preference for short selling.

How to use MFI indicator for day trading? ›

Traders can use MFI to confirm trend strength. When the MFI is moving in the same direction as the asset's price, it can confirm the strength of the trend. For example, if the price is making higher highs, and the MFI is also making higher highs, it could indicate that the trend is strong and may continue.

Is positive funding rate bullish or bearish? ›

When the market is bullish, the Funding Rate is positive and tends to rise over time. The long position traders will pay a Funding Rate to short position traders.

What is aggregate funding method? ›

The aggregate funding method is a standard actuarial funding method. The annual cost of benefits under the aggregate method is equal to the normal cost. The method does not produce an unfunded liability. The normal cost is determined for the entire group rather than on an individual basis.

What is the aggregate fund value? ›

Aggregate Value means, with respect to any block of Equity Stock, the sum of the products of (i) the number of shares of each class of Equity Stock within such block multiplied by (ii) the corresponding Market Price of one share of Equity Stock of such class.

What is the difference between aggregate and average deposit? ›

Aggregate and average are two terms that are often used in calculations. However, these two terms mean two different things. Aggregate refers to the total sum of elements in a data set whereas average refers to the central value in a dataset. This is the key difference between aggregate and average.

What is the aggregate interest payment? ›

Aggregate Interest means, at any time of determination, the aggregate accrued and unpaid Interest on the Loans of all Lenders at such time. “Aggregate Principal” means, at any time of determination, the aggregate outstanding Principal of all Lenders at such time.

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