$OGN Current funding rate: -0.252% (settled every 4 hours); shorts pay.
Hey everyone, what exactly is the funding rate? Here’s a quick explanation 👇
The rate is mainly made up of two parts: the premium of the contract over the spot price, plus a fixed interest component. When the premium is small, most contracts have a rate of around 0.01% every 8 hours.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of cascading liquidations also increases.
Learning to read the indicators isn’t hard. The hard part is sticking to your plan when emotions are running high.
#OGN
Hey everyone, what exactly is the funding rate? Here’s a quick explanation 👇
The rate is mainly made up of two parts: the premium of the contract over the spot price, plus a fixed interest component. When the premium is small, most contracts have a rate of around 0.01% every 8 hours.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of cascading liquidations also increases.
Learning to read the indicators isn’t hard. The hard part is sticking to your plan when emotions are running high.
#OGN