$SKL|Funding rate -0.288%|Shorts pay|Current price 0.00494
Before looking at capital flows, first understand the funding rate.
Spot has no funding fee; it only applies to perpetual contract positions.
Large negative funding rates are sometimes common when shorts are too concentrated; the risk often mentioned is a short squeeze, but that is only one scenario.
For leveraged positions, first figure out whether you can bear the worst-case outcome, then see what the signals say.
#SKL
Make your own decision on when to enter or exit; don’t follow the crowd.
Before looking at capital flows, first understand the funding rate.
Spot has no funding fee; it only applies to perpetual contract positions.
Large negative funding rates are sometimes common when shorts are too concentrated; the risk often mentioned is a short squeeze, but that is only one scenario.
For leveraged positions, first figure out whether you can bear the worst-case outcome, then see what the signals say.
#SKL
Make your own decision on when to enter or exit; don’t follow the crowd.