🐋 $SKL latest funding rate: -0.177% (settled every 4 hours); shorts pay.
Where funds are concentrated, the funding rate is usually the first thing to reflect it.
Perpetual contracts have no settlement date. The funding rate keeps the contract price anchored to the spot price: longs and shorts periodically pay each other a fee.
The funding rate should generally be viewed alongside open interest and price: when the rate is high and open interest surges, leverage is usually more pronounced.
Extreme readings are usually accompanied by sharper swings. At times like these, it’s better to reduce leverage rather than add to your position.
For reference only. Trade at your own risk.
Where funds are concentrated, the funding rate is usually the first thing to reflect it.
Perpetual contracts have no settlement date. The funding rate keeps the contract price anchored to the spot price: longs and shorts periodically pay each other a fee.
The funding rate should generally be viewed alongside open interest and price: when the rate is high and open interest surges, leverage is usually more pronounced.
Extreme readings are usually accompanied by sharper swings. At times like these, it’s better to reduce leverage rather than add to your position.
For reference only. Trade at your own risk.