$TRUTH Current funding rate: +0.0438% (settled every 4 hours). Longs pay; simply annualized based on this period, that’s about 95.8%.
When I first started trading contracts, I always thought funding fees were fees charged by the exchange. It took me a while to understand that funding is actually paid between longs and shorts—the exchange doesn’t collect it. When the rate is positive, longs pay shorts; when it’s negative, shorts pay longs.
Understanding this indicator is meant to keep you from being misled by a single number, not to help you pinpoint market tops and bottoms.
#TRUTH
When I first started trading contracts, I always thought funding fees were fees charged by the exchange. It took me a while to understand that funding is actually paid between longs and shorts—the exchange doesn’t collect it. When the rate is positive, longs pay shorts; when it’s negative, shorts pay longs.
Understanding this indicator is meant to keep you from being misled by a single number, not to help you pinpoint market tops and bottoms.
#TRUTH