TradFi futures

Binance is changing its pricing model for commodity TradFi futures on weekends to an orderbook-weighted model, which may affect margin and liquidation behavior. This change will occur during off-hours. The new model could impact trading dynamics.

The article explains that perpetual funding rates in crypto futures reflect market opinions with skin in the game, where positive funding means longs pay shorts to anchor price to spot, and negative funding indicates shorts paying longs. It contrasts this with traditional finance's basis mechanism and questions whether funding rates can be traded as standalone alpha.