$SIREN Latest funding rate: +0.0913% (settled every 4 hours); longs pay.
How is this figure calculated?
You can think of the funding rate as rent for holding a position: whichever side pushes the contract price away from the spot price is usually the one that pays.
For those holding positions on the paying side, the higher the rate, the more they pay at each settlement, and the higher their holding costs become.
Indicators can be inaccurate, so risk management is essential: thinking ahead about what to do if you're wrong matters more than guessing correctly.
#SIREN
How is this figure calculated?
You can think of the funding rate as rent for holding a position: whichever side pushes the contract price away from the spot price is usually the one that pays.
For those holding positions on the paying side, the higher the rate, the more they pay at each settlement, and the higher their holding costs become.
Indicators can be inaccurate, so risk management is essential: thinking ahead about what to do if you're wrong matters more than guessing correctly.
#SIREN