🤔💰 Ever wonder why your profits shrink or losses grow without price movement? It's often funding rates eating away! Funding is a small fee exchanged between long and short traders every 8 hours to keep perpetual futures prices near spot. If funding is positive (most common), longs pay shorts. If negative, shorts pay longs.
Let's say you're long $10,000 BTC and the funding rate is a typical +0.01%. You pay $10,000 * 0.0001 = $1 every 8 hours. That's $3 per day! Over a week, that's $21 gone. Without you noticing, it can turn a small profit into a breakeven, or a breakeven into a loss, especially if you're holding positions for days. I ignored these costs once, and it added to my tuition fee! Always, always check the funding rate before you enter *any* position.
#FundingRates #FuturesTrading #BinanceSquare #CryptoTips #TradingCosts
Let's say you're long $10,000 BTC and the funding rate is a typical +0.01%. You pay $10,000 * 0.0001 = $1 every 8 hours. That's $3 per day! Over a week, that's $21 gone. Without you noticing, it can turn a small profit into a breakeven, or a breakeven into a loss, especially if you're holding positions for days. I ignored these costs once, and it added to my tuition fee! Always, always check the funding rate before you enter *any* position.
#FundingRates #FuturesTrading #BinanceSquare #CryptoTips #TradingCosts