$TRUTH ｜Funding rate +0.0447%｜Longs pay｜Current price 0.01996
Before looking at positions, understand the funding rate.
When the contract price is higher than the spot price, the rate is often positive and longs pay; when it is below the spot price, the rate is usually negative and shorts pay.
Deeply negative funding rates are sometimes common when shorts are overly concentrated. The risk often mentioned is a short squeeze, but it is only one possibility.
Learning to read indicators is easy; the hard part is sticking to your plan when the market is extremely volatile.
#TRUTH
Before looking at positions, understand the funding rate.
When the contract price is higher than the spot price, the rate is often positive and longs pay; when it is below the spot price, the rate is usually negative and shorts pay.
Deeply negative funding rates are sometimes common when shorts are overly concentrated. The risk often mentioned is a short squeeze, but it is only one possibility.
Learning to read indicators is easy; the hard part is sticking to your plan when the market is extremely volatile.
#TRUTH