💸💡 Funding rates sound small, but they silently drain your account if you're not careful. These are payments between long and short traders to keep perpetual futures prices aligned with spot. If the funding rate is positive (most common), longs pay shorts. If negative, shorts pay longs. Imagine a $1,000 leveraged long position with a typical 0.01% funding rate every 8 hours. That's $0.10 * 3 times a day = $0.30 daily. Over a week, that's $2.10 gone without the market even moving. This silently chips away at your PnL, especially when funding spikes during high volatility. I wish I knew this before losing $5,400. My rule: ALWAYS check the funding rate before opening any position.
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