During my lunch break, I came across this: $GTC ’s latest funding rate is -1.01% (settled every 4 hours), with shorts paying.
Short sellers are paying the toll; I’m just keeping the books.
On a more serious note, the rate is mainly made up of two components: the premium of the perpetual contract over spot, plus a fixed interest rate component. When the premium is small, most contracts come in at around 0.01% per 8-hour period.
Several indicators confirming one another is more reliable than looking at just one, but even more indicators can’t provide a definitive conclusion.
Short sellers are paying the toll; I’m just keeping the books.
On a more serious note, the rate is mainly made up of two components: the premium of the perpetual contract over spot, plus a fixed interest rate component. When the premium is small, most contracts come in at around 0.01% per 8-hour period.
Several indicators confirming one another is more reliable than looking at just one, but even more indicators can’t provide a definitive conclusion.