$SAND | Funding rate: -0.201% | Shorts pay
Before looking at positions, first understand the funding rate.
This money is paid directly between traders; it is not a fee charged by the exchange.
When the rate returns to normal, it usually means either prices have corrected or the crowded side has exited. Which one it is depends on how open interest changes next.
Any indicator only summarizes what has already happened. The market can move in the opposite direction at any time.
This is a personal perspective and may not be accurate. Please think critically.
Before looking at positions, first understand the funding rate.
This money is paid directly between traders; it is not a fee charged by the exchange.
When the rate returns to normal, it usually means either prices have corrected or the crowded side has exited. Which one it is depends on how open interest changes next.
Any indicator only summarizes what has already happened. The market can move in the opposite direction at any time.
This is a personal perspective and may not be accurate. Please think critically.