What is funding and what does it depend on?

A basic understanding of "minus funding means shorts pay longs" is enough for a beginner #traders .

#Funding is an #exchange tool for balancing spot and futures #prices .

Since spot and futures are not related to each other, without funding the price would easily go in different directions.

Accordingly, when you see large funding, it means that the prices have diverged a lot — and the stronger, the higher it is.

For example, with negative funding, the spot price is higher than the futures price, and the stock exchange encourages #traders to open long positions and thereby raise the price.