$RLC Latest funding rate: -0.28% (settled every 4 hours); shorts pay.
When I first started trading futures, I always thought the funding fee was money collected by the platform. It took me a while to understand that this money is only paid between traders holding positions at the settlement moment, flowing between longs and shorts. The platform doesn't collect it.
Many people care more about how long the rate lasts: staying at an extreme level for several consecutive periods is more meaningful than a one-off spike.
The same reading can mean very different things in different market conditions, so don't blindly apply a single rule.
#RLC
This is just my opinion and may not be right. Please manage your own risk.
When I first started trading futures, I always thought the funding fee was money collected by the platform. It took me a while to understand that this money is only paid between traders holding positions at the settlement moment, flowing between longs and shorts. The platform doesn't collect it.
Many people care more about how long the rate lasts: staying at an extreme level for several consecutive periods is more meaningful than a one-off spike.
The same reading can mean very different things in different market conditions, so don't blindly apply a single rule.
#RLC
This is just my opinion and may not be right. Please manage your own risk.