🐋 $CAP latest funding rate: +0.0433% (settled every 4 hours). Longs pay; simply annualized based on this period, that’s about 94.9%.
The funding rate usually reflects pretty quickly which side positions are crowded on.
When the contract price is above the spot index, the funding rate is usually positive and longs pay; when it’s below spot, the rate is often negative and shorts pay.
Unusually high readings often come with more volatility. That’s when it’s better to reduce leverage rather than make a big bet.
Personal notes, not investment advice.
The funding rate usually reflects pretty quickly which side positions are crowded on.
When the contract price is above the spot index, the funding rate is usually positive and longs pay; when it’s below spot, the rate is often negative and shorts pay.
Unusually high readings often come with more volatility. That’s when it’s better to reduce leverage rather than make a big bet.
Personal notes, not investment advice.