Quick note: $DOOD has a current funding rate of -0.526% (settled every 4 hours). Shorts pay, which works out to an annualized rate of about 1152.8% based on this period.
People often ask how to interpret funding rates. This is how I understand them.
When the funding rate is positive, longs pay shorts; when it’s negative, the direction is reversed, and traders holding short positions pay those holding long positions.
Funding rates for smaller coins tend to fluctuate more wildly. An extreme rate in a single period doesn’t necessarily indicate a trend, and it’s even rarer for major coins to hit extreme rates.
With leveraged trading, first think about whether you can withstand the worst-case scenario, then look at what the signals are saying.
People often ask how to interpret funding rates. This is how I understand them.
When the funding rate is positive, longs pay shorts; when it’s negative, the direction is reversed, and traders holding short positions pay those holding long positions.
Funding rates for smaller coins tend to fluctuate more wildly. An extreme rate in a single period doesn’t necessarily indicate a trend, and it’s even rarer for major coins to hit extreme rates.
With leveraged trading, first think about whether you can withstand the worst-case scenario, then look at what the signals are saying.