$SKL Latest funding rate: -0.228% (settled every 4 hours). Shorts pay. Simply annualized based on this period, that's about 498.3%.
A question every beginner asks: what exactly is a funding rate?
You can think of the funding rate as a toll for holding a position: whichever side pushes the contract price away from the spot price is often the side that pays.
Some people see extreme funding rates as a contrarian indicator, but there have also been cases where prices kept moving in one direction even after rates became extreme.
Extreme readings often come with greater volatility. At times like these, it's better to reduce your position size rather than make a big bet.
#SKL
DYOR, and only trade within your means.
A question every beginner asks: what exactly is a funding rate?
You can think of the funding rate as a toll for holding a position: whichever side pushes the contract price away from the spot price is often the side that pays.
Some people see extreme funding rates as a contrarian indicator, but there have also been cases where prices kept moving in one direction even after rates became extreme.
Extreme readings often come with greater volatility. At times like these, it's better to reduce your position size rather than make a big bet.
#SKL
DYOR, and only trade within your means.