$MAGIC Latest funding rate: -0.061% (settled every 4 hours). Shorts pay. Simply annualized based on this period, that’s about 133.6%.
Since we’re on the subject, let’s talk about funding rates.
The rate consists of two parts: the premium of the perpetual contract over the spot price, plus a base interest rate component. When the premium is small, most contracts settle at around 0.01% on an 8-hour basis.
Some people also treat extreme funding rates as a contrarian signal, but historically there have been cases where prices continued moving in the same direction even after rates became extreme.
With leveraged trading, first work out whether you can withstand the worst-case outcome, then consider what the indicators say.
#MAGIC
NFA. Do your own research.
Since we’re on the subject, let’s talk about funding rates.
The rate consists of two parts: the premium of the perpetual contract over the spot price, plus a base interest rate component. When the premium is small, most contracts settle at around 0.01% on an 8-hour basis.
Some people also treat extreme funding rates as a contrarian signal, but historically there have been cases where prices continued moving in the same direction even after rates became extreme.
With leveraged trading, first work out whether you can withstand the worst-case outcome, then consider what the indicators say.
#MAGIC
NFA. Do your own research.