Funding rates: the cost of holding a perpetual that nobody budgets for
A perpetual has no expiry, so something has to keep it tethered to spot. That something is a payment between longs and shorts, and it is a real line in your P&L.
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How perpetuals, liquidity and order flow actually behave, and what that means for a bot.
A perpetual has no expiry, so something has to keep it tethered to spot. That something is a payment between longs and shorts, and it is a real line in your P&L.
A market maker earns the spread and pays for information. Every fill you get is a fill somebody wanted, and the whole discipline is about surviving that asymmetry.
The book contains far more numbers than signal. A handful of constructions carry most of what is usable, and most of the rest is a slower way to look at price.
A cascade is not a market opinion. It is forced selling by an exchange algorithm, and it is the reason a stop-loss can fill several percent past its level.
Open interest tells you how much leverage is in the market. It is genuinely informative and it is also the single most common source of look-ahead bias we find.
Both have a high win rate and a payoff shape that hides the loss in the tail. That is not a reason to avoid them — it is a reason to build them with a hard ceiling.
We write about what we build. If you need it built, get in touch — scoping is free.