Market Notes | $BLUR | Funding rate: -0.12% | Shorts pay
First, the definition: only positions held at the moment of settlement are included in funding payments. Positions closed before settlement are not affected.
Next, how to read it: a clearly positive funding rate is often interpreted as overheated bullish sentiment, with many traders using leverage to go long; a clearly negative rate suggests the opposite.
Calculating your position size based on where you place your stop-loss is much more reliable than trading on instinct.
First, the definition: only positions held at the moment of settlement are included in funding payments. Positions closed before settlement are not affected.
Next, how to read it: a clearly positive funding rate is often interpreted as overheated bullish sentiment, with many traders using leverage to go long; a clearly negative rate suggests the opposite.
Calculating your position size based on where you place your stop-loss is much more reliable than trading on instinct.