Learning this won’t make me stronger overnight, but it can help me avoid one rookie mistake.
Today’s topic: funding rates
Funding payments are exchanged only between the long and short sides of perpetual contracts. The exchange doesn’t collect this money, so it’s different from trading fees.
If you’re planning to hold a position for a long time, factor funding payments into your costs. When rates are high, they can add up over several periods.
Example coin: $BTC , quoted at 82556 (24h +0.7%).
#BTC
Do your own research before placing an order.
Today’s topic: funding rates
Funding payments are exchanged only between the long and short sides of perpetual contracts. The exchange doesn’t collect this money, so it’s different from trading fees.
If you’re planning to hold a position for a long time, factor funding payments into your costs. When rates are high, they can add up over several periods.
Example coin: $BTC , quoted at 82556 (24h +0.7%).
#BTC
Do your own research before placing an order.