$CTSI | Funding rate: -0.576% | Shorts pay | Current price: 0.03447
Before tracking funding dynamics, understand the rate.
Perpetual contracts have no expiry date. Funding rates help keep their prices anchored to spot: longs and shorts periodically pay each other a fee.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of cascading stop-losses increases.
Don’t place an order during the sharpest moment of volatility. Wait for the candlestick to close before assessing the situation.
#CTSI
The above is compiled from public information. Refer to the original text.
Before tracking funding dynamics, understand the rate.
Perpetual contracts have no expiry date. Funding rates help keep their prices anchored to spot: longs and shorts periodically pay each other a fee.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of cascading stop-losses increases.
Don’t place an order during the sharpest moment of volatility. Wait for the candlestick to close before assessing the situation.
#CTSI
The above is compiled from public information. Refer to the original text.