$AIN latest funding rate +0.0934% (settled every 4 hours), longs pay; based on this period, the simple annualized rate is about 204.6%.
Let’s use this number to break down the funding rate.
Perpetual contracts have no delivery date, and rely on funding rates to keep the contract price anchored to spot: longs and shorts periodically pay each other a fee.
For someone holding a position on the paying side, the more extreme the rate, the more you pay at each settlement, and the higher your holding cost becomes.
The same reading can mean very different things in different market conditions, so don’t blindly copy a single rule of thumb.
#AIN
Let’s use this number to break down the funding rate.
Perpetual contracts have no delivery date, and rely on funding rates to keep the contract price anchored to spot: longs and shorts periodically pay each other a fee.
For someone holding a position on the paying side, the more extreme the rate, the more you pay at each settlement, and the higher your holding cost becomes.
The same reading can mean very different things in different market conditions, so don’t blindly copy a single rule of thumb.
#AIN