Indicator Notes | $BTW | Funding Rate -0.052% | Shorts Pay
First, the definition: Annualized rates simply project the current rate over a year. The rate changes every period, so don’t treat it as the actual cost for a full year.
A common way to read it: The further the rate deviates from normal, the more crowded one side’s positions are. If the price reverses, the risk of a cascade of stop-losses increases.
Learning to read indicators isn’t hard. The hard part is sticking to your rules when emotions are at their most extreme.
First, the definition: Annualized rates simply project the current rate over a year. The rate changes every period, so don’t treat it as the actual cost for a full year.
A common way to read it: The further the rate deviates from normal, the more crowded one side’s positions are. If the price reverses, the risk of a cascade of stop-losses increases.
Learning to read indicators isn’t hard. The hard part is sticking to your rules when emotions are at their most extreme.