$WAL WAL has a pretty wild funding rate: -100% annualized, with shorts paying longs. But have you ever thought about how this extreme funding rate and bank deposit rates reflect two generations’ different ways of looking at things? One side thinks the interest is too low; the other thinks the funding rate is too extreme.
My take is, there’s no such thing as free money. A negative funding rate looks like a subsidy, but it actually signals that the market is heavily betting in one direction. If you’re willing to take that rate and the market moves against you, what you earn from funding won’t make up for your losses on the principal. Historically, extreme funding rates don’t last long: either the one-way move runs wild, or arbitrageurs vote with their feet and get out.
In any case, when I see something like this, I take a moment to stay calm. The market might be exciting, but you need to weigh the cost of your position carefully. It’s fine to watch the show—just don’t end up starring in it.
#资金费率 #合约观察 #WAL
My take is, there’s no such thing as free money. A negative funding rate looks like a subsidy, but it actually signals that the market is heavily betting in one direction. If you’re willing to take that rate and the market moves against you, what you earn from funding won’t make up for your losses on the principal. Historically, extreme funding rates don’t last long: either the one-way move runs wild, or arbitrageurs vote with their feet and get out.
In any case, when I see something like this, I take a moment to stay calm. The market might be exciting, but you need to weigh the cost of your position carefully. It’s fine to watch the show—just don’t end up starring in it.
#资金费率 #合约观察 #WAL