Annualized Funding Rate vs Delta-Neutral

The funding rate per settlement period expressed as an annual percentage; calculated as rate per period × settlements per day × 365; used to compare funding cost across different assets and time periods; above 30% annualized indicates crowded long conditions; below -15% indicates crowded short conditions.

A portfolio or position configuration in which the combined exposure to price movement is zero; achieved in basis trading by holding equal and opposite long spot and short futures positions; a delta-neutral position profits from carry income (funding rate) rather than directional price movement.