$BLUR Current funding rate: -0.251% (settled every 4 hours). Shorts pay, which works out to roughly 549.4% annualized if this period is simply extrapolated.
When I first started trading futures, I always thought funding fees were money the exchange took. It took me a while to understand that the payment is settled only between traders holding positions at settlement time, with money flowing between longs and shorts. The exchange doesn’t collect it.
Some people view extreme funding rates as a contrarian signal, but historically there have also been cases where prices continued moving in the same direction even after rates became extreme.
With leveraged positions, first work out whether you can withstand the worst-case scenario, then consider what the indicators are saying.
#BLUR
When I first started trading futures, I always thought funding fees were money the exchange took. It took me a while to understand that the payment is settled only between traders holding positions at settlement time, with money flowing between longs and shorts. The exchange doesn’t collect it.
Some people view extreme funding rates as a contrarian signal, but historically there have also been cases where prices continued moving in the same direction even after rates became extreme.
With leveraged positions, first work out whether you can withstand the worst-case scenario, then consider what the indicators are saying.
#BLUR