$SIREN The latest funding rate is +0.0553% (settled every 4 hours). Longs pay. Annualized based on this period alone, that’s approximately 121.1%.
Let’s use this data to talk about funding rates.
When the perpetual contract price is higher than the spot price, the rate is often positive and longs pay; when it’s lower than the spot price, the rate is often negative and shorts pay.
Some people treat extreme funding rates as a contrarian signal, but there have been plenty of cases where prices continued moving in one direction even after rates became elevated.
Calculating your position size based on your stop-loss distance is much more reliable than trading on gut instinct.
Let’s use this data to talk about funding rates.
When the perpetual contract price is higher than the spot price, the rate is often positive and longs pay; when it’s lower than the spot price, the rate is often negative and shorts pay.
Some people treat extreme funding rates as a contrarian signal, but there have been plenty of cases where prices continued moving in one direction even after rates became elevated.
Calculating your position size based on your stop-loss distance is much more reliable than trading on gut instinct.