$MINA Current funding rate: -0.111% (settled every 8 hours). Shorts pay; a simple annualized estimate based on this period is about 121.7%.
When I first got into futures, I always thought funding fees were fees charged by the platform. It took me a while to understand that funding payments don’t go to the exchange—they’re exchanged between long and short position holders. Who pays and who receives depends on whether the rate is positive or negative.
The further the rate moves from normal levels, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of cascading stop-losses is also higher.
All data describes price movements that have already happened; prices can move in the opposite direction at any time.
#MINA
I’m just sharing my thoughts—this is not investment advice.
When I first got into futures, I always thought funding fees were fees charged by the platform. It took me a while to understand that funding payments don’t go to the exchange—they’re exchanged between long and short position holders. Who pays and who receives depends on whether the rate is positive or negative.
The further the rate moves from normal levels, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of cascading stop-losses is also higher.
All data describes price movements that have already happened; prices can move in the opposite direction at any time.
#MINA
I’m just sharing my thoughts—this is not investment advice.