$UAI Latest funding rate: +0.114% (settled every 4 hours). Longs pay. A simple annualized estimate based on this period is about 248.7%.
When I first started trading futures, I always thought funding fees were fees charged by the exchange. It was only later that I realized funding payments don't go to the exchange—they're settled between long and short position holders, and which side pays depends on whether the rate is positive or negative.
Funding rates usually return to normal either through price corrections or by the crowded side closing positions. Which one it is depends on subsequent changes in open interest.
Before trading with leverage, first work out whether you can handle the worst-case outcome, then consider what the signals are saying.
For reference only. Make your own decisions.
When I first started trading futures, I always thought funding fees were fees charged by the exchange. It was only later that I realized funding payments don't go to the exchange—they're settled between long and short position holders, and which side pays depends on whether the rate is positive or negative.
Funding rates usually return to normal either through price corrections or by the crowded side closing positions. Which one it is depends on subsequent changes in open interest.
Before trading with leverage, first work out whether you can handle the worst-case outcome, then consider what the signals are saying.
For reference only. Make your own decisions.