$RSR Latest funding rate: -1.04% (settled every 8 hours); shorts pay.
Let's use this data to break down the funding rate.
Spot trading does not involve funding fees; funding rates only apply to positions in perpetual contracts.
Funding rates generally return to normal either when prices pull back or when the crowded side exits. Which is happening needs to be assessed based on changes in open interest going forward.
Indicators can be inaccurate, but risk management is essential: deciding in advance what to do if you're wrong is more important than trying to predict correctly.
#RSR
Let's use this data to break down the funding rate.
Spot trading does not involve funding fees; funding rates only apply to positions in perpetual contracts.
Funding rates generally return to normal either when prices pull back or when the crowded side exits. Which is happening needs to be assessed based on changes in open interest going forward.
Indicators can be inaccurate, but risk management is essential: deciding in advance what to do if you're wrong is more important than trying to predict correctly.
#RSR