$CTSI|Funding Rate -0.576%|Shorts Pay
What is the funding rate? When the funding rate is positive, longs pay shorts; when it is negative, the direction is reversed, and the side holding the short position pays longs.
Large negative funding rates sometimes appear when short positions are clustered. The commonly mentioned risk is a short squeeze, but that is only one scenario.
Before trading with leverage, first consider whether you can withstand the worst-case scenario, and then look at what the indicators are saying.
DYOR, participate rationally.
What is the funding rate? When the funding rate is positive, longs pay shorts; when it is negative, the direction is reversed, and the side holding the short position pays longs.
Large negative funding rates sometimes appear when short positions are clustered. The commonly mentioned risk is a short squeeze, but that is only one scenario.
Before trading with leverage, first consider whether you can withstand the worst-case scenario, and then look at what the indicators are saying.
DYOR, participate rationally.