Let’s calculate the holding cost: $API3 . The current funding rate is -0.139%, settled every 4 hours, equivalent to an annualized rate of about 304.7%.
In other words, if you’re holding a short position, you pay the longs at every settlement, and the longer you hold it, the more you’re on the back foot. Once the price stops falling, short covering can push it higher.
Do you use open interest as a reference?
Just my personal observation, not a trading recommendation.
In other words, if you’re holding a short position, you pay the longs at every settlement, and the longer you hold it, the more you’re on the back foot. Once the price stops falling, short covering can push it higher.
Do you use open interest as a reference?
Just my personal observation, not a trading recommendation.