Premium Index

The premium index is the gap between a perpetual's impact prices and the spot index, averaged over the funding interval; it is the input the exchange tu…

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What is Premium Index in crypto trading?

The premium index is the gap between a perpetual's impact prices and the spot index, averaged over the funding interval; it is the input the exchange turns into the funding rate. Positive premium means the perp trades rich to spot and longs will pay; negative means it trades cheap and shorts will pay. It is funding before funding.

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