$API3 Current funding rate: -0.0587% (settled every 4 hours). Shorts pay; simply annualized based on this period, that’s about 128.6%.
Folks, what exactly is a funding rate? Here’s the short version👇
Think of the funding rate as a toll for holding a position: whichever side pushes the contract price further away from spot usually pays the fee.
A deeply negative funding rate is sometimes seen when short positions are overly concentrated. One commonly cited risk is that shorts may be forced to cover, pushing prices higher—but that’s only one possibility.
Indicators can be inaccurate, so don’t skip risk management: deciding in advance what you’ll do if you’re wrong matters more than whether your prediction is right.
#API3
Just my personal opinion—don’t take it too seriously.
Folks, what exactly is a funding rate? Here’s the short version👇
Think of the funding rate as a toll for holding a position: whichever side pushes the contract price further away from spot usually pays the fee.
A deeply negative funding rate is sometimes seen when short positions are overly concentrated. One commonly cited risk is that shorts may be forced to cover, pushing prices higher—but that’s only one possibility.
Indicators can be inaccurate, so don’t skip risk management: deciding in advance what you’ll do if you’re wrong matters more than whether your prediction is right.
#API3
Just my personal opinion—don’t take it too seriously.