# Funding Rate Filter

The "Funding Rate" filter allows the algorithm to place orders only if the funding rate is within the specified range.

**Availability:** Only on USDT-M and COIN-M markets.

### How to Use

Specify the funding rate range in percentages from minimum to maximum value.

**How it works:** The algorithm checks the current funding rate. If it falls within the range — orders are placed, if it goes outside — the pair is excluded.

**Example:** If you set a range from -0.1% to 0.1%, the algorithm will only work on pairs with relatively neutral funding rate, excluding markets with extreme values.

### What is Funding Rate

**Funding Rate** is a periodic payment between traders holding long and short positions on perpetual contracts.

**How it works:**

* Updates every minute in real time
* Charged periodically at specific intervals (usually every 4 or 8 hours, depending on the exchange and trading pair)
* Helps keep the perpetual contract price close to the spot price of the underlying asset

**Payment direction:**

* Positive funding → longs pay shorts
* Negative funding → shorts pay longs

### Why This is Needed

**Assess market sentiment:**

* High positive funding → crowd is in longs (overheating)
* Negative funding → crowd is in shorts

**Avoid entering overheated positions:** When everyone is long and funding is too high, you can skip such a market or conversely enter a short.

**Application:** Enable the filter and set an acceptable range. The algorithm will only work with pairs where the funding rate matches your strategy.


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