Market Notes | $WAL | Funding Rate -0.193% | Shorts Pay
First, the definition: Think of the funding rate as rent for holding a position. Whichever side pushes the contract price away from spot usually pays.
Next, how to read it: For people holding positions on the paying side, the higher the rate, the more they pay at each settlement, and the cost of holding the position rises accordingly.
Indicators can fail, but risk management shouldn’t be skipped: Think first about what you’ll do if you’re wrong—it matters more than whether your prediction is accurate.
#WAL
It’s your money, so you decide.
First, the definition: Think of the funding rate as rent for holding a position. Whichever side pushes the contract price away from spot usually pays.
Next, how to read it: For people holding positions on the paying side, the higher the rate, the more they pay at each settlement, and the cost of holding the position rises accordingly.
Indicators can fail, but risk management shouldn’t be skipped: Think first about what you’ll do if you’re wrong—it matters more than whether your prediction is accurate.
#WAL
It’s your money, so you decide.