A witty take: $Q ’s latest funding rate is -0.116% (settled every 4 hours). Shorts pay, which works out to an annualized rate of about 252.9% based on this period alone.
Shorts are paying the toll; I’m just here to listen in.
On a serious note, the annualized funding rate is simply the current rate extrapolated over 365 days. The rate changes every period, so don’t treat it as the actual cost for a full year.
Indicators may be inaccurate, but stop-losses are essential: deciding in advance what to do if you’re wrong matters more than getting the prediction right.