$TRUTH Current funding rate: +0.0447% (settled every 4 hours); longs pay.
A question every beginner asks: What is the funding rate?
The annualized rate is simply the current rate extrapolated over a year. The rate changes every period, so don't mistake it for the actual cost over a year.
Longs are paying the toll; I'm just keeping the books.
Extreme readings usually signal greater volatility. That's when you should reduce your position, not add to it.
A question every beginner asks: What is the funding rate?
The annualized rate is simply the current rate extrapolated over a year. The rate changes every period, so don't mistake it for the actual cost over a year.
Longs are paying the toll; I'm just keeping the books.
Extreme readings usually signal greater volatility. That's when you should reduce your position, not add to it.