Data: $RAYSOL ｜Funding rate: -0.0529%｜Shorts pay｜Current price: 2.1092
Explanation: Only positions still held at the settlement time participate in paying or receiving funding fees. Positions closed before settlement neither pay nor receive them.
A common interpretation: The farther 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.
The purpose of understanding this indicator is to avoid being alarmed by the numbers, not to use it to predict price movements accurately.
#RAYSOL
Explanation: Only positions still held at the settlement time participate in paying or receiving funding fees. Positions closed before settlement neither pay nor receive them.
A common interpretation: The farther 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.
The purpose of understanding this indicator is to avoid being alarmed by the numbers, not to use it to predict price movements accurately.
#RAYSOL