$BERA skyrocketed 7% — how does the funding rate affect your contract positions?
The funding rate is like the “rent” in futures/contract trading. It’s charged every 8 hours. When the market is bullish (for example, $BERA right now), long traders have to pay “rent” to short sellers—this is a positive funding rate. The opposite is negative.
Here’s an example: suppose $BERA ’s current funding rate is 0.01%. If you hold a long contract position, every 8 hours you’ll have to pay that 0.01% “rent” to the shorts. The longer you hold the position, the more expensive this “rent” becomes. Conversely, if you’re short, you receive that money.
Don’t underestimate it. With this 7% rally, $BERA ’s funding rate may already be high. If the rate is 0.1%, then per day it’s 0.3%, and per week it’s 2.1%—that’s close to about one-third of the price move!
That’s why many traders open shorts when the funding rate is high and go long when it’s low—basically “pulling wool over the market,” though the risk is also higher.
$BERA #数字货币 #现货 #交易
The funding rate is like the “rent” in futures/contract trading. It’s charged every 8 hours. When the market is bullish (for example, $BERA right now), long traders have to pay “rent” to short sellers—this is a positive funding rate. The opposite is negative.
Here’s an example: suppose $BERA ’s current funding rate is 0.01%. If you hold a long contract position, every 8 hours you’ll have to pay that 0.01% “rent” to the shorts. The longer you hold the position, the more expensive this “rent” becomes. Conversely, if you’re short, you receive that money.
Don’t underestimate it. With this 7% rally, $BERA ’s funding rate may already be high. If the rate is 0.1%, then per day it’s 0.3%, and per week it’s 2.1%—that’s close to about one-third of the price move!
That’s why many traders open shorts when the funding rate is high and go long when it’s low—basically “pulling wool over the market,” though the risk is also higher.
$BERA #数字货币 #现货 #交易