Indicator note｜$SAND ｜Funding rate -0.111%｜Shorts pay｜Current price 0.05843
Definition: When the contract price is higher than the spot price, the funding rate is usually positive, and longs pay; when it is lower than the spot price, the rate is usually negative, and shorts pay.
How to read it: Deeply negative funding rates are sometimes seen when shorts are overly concentrated. A short squeeze is a commonly cited risk, but it is only one possible scenario.
Calculating position size backward from the stop-loss distance is much more reliable than picking a size arbitrarily.
Definition: When the contract price is higher than the spot price, the funding rate is usually positive, and longs pay; when it is lower than the spot price, the rate is usually negative, and shorts pay.
How to read it: Deeply negative funding rates are sometimes seen when shorts are overly concentrated. A short squeeze is a commonly cited risk, but it is only one possible scenario.
Calculating position size backward from the stop-loss distance is much more reliable than picking a size arbitrarily.