🐋 $CTK Current funding rate: -0.24% (settled every 4 hours); shorts pay.
Funding rates usually quickly reflect which side positions are crowded on.
The annualized rate is simply this period’s rate multiplied out over a year. The rate changes every period, so don’t treat it as the actual cost for a year.
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 a cascade of liquidations is also greater.
The same data can mean very different things in different market conditions, so don’t apply a single rule of thumb blindly.
#CTK
Funding rates usually quickly reflect which side positions are crowded on.
The annualized rate is simply this period’s rate multiplied out over a year. The rate changes every period, so don’t treat it as the actual cost for a year.
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 a cascade of liquidations is also greater.
The same data can mean very different things in different market conditions, so don’t apply a single rule of thumb blindly.
#CTK