Let's talk about funding rates.
Only traders still holding a position at settlement pay or receive funding. If you close your position before settlement, you won't be affected.
One more thing to consider: when the futures price is higher than the spot price, the funding rate is usually positive, so longs have to pay. This raises the cost of holding a long position and puts downward pressure on the futures price.
If you plan to hold a position for a long time, factor funding payments into your holding costs. When rates are high, they can add up to a significant amount over several settlement periods.
Back to the market: $BTC is currently at 81986, down 0.78% over 24 hours.
Only traders still holding a position at settlement pay or receive funding. If you close your position before settlement, you won't be affected.
One more thing to consider: when the futures price is higher than the spot price, the funding rate is usually positive, so longs have to pay. This raises the cost of holding a long position and puts downward pressure on the futures price.
If you plan to hold a position for a long time, factor funding payments into your holding costs. When rates are high, they can add up to a significant amount over several settlement periods.
Back to the market: $BTC is currently at 81986, down 0.78% over 24 hours.