Time to eat—today’s little candlestick-chart skit: $BLUR has a current funding rate of -0.1% (settled every 4 hours), with shorts paying.
The short sellers are paying the toll; I’m just here to listen in.
Jokes aside, the annualized rate is simply the current rate multiplied out over a year. The rate changes every period, so don’t treat it as a guaranteed annual figure.
Indicators can fail, but risk management shouldn’t be absent: think first about what you’ll do if you’re wrong. That matters more than guessing correctly.