A note: $ERA ’s current funding rate is -0.16% (settled every 1 hour). Shorts pay; simply annualized based on this interval, that’s about 1404%.
People often ask what the funding rate means. This is how I understand it.
This money is settled between traders; it isn’t a fee charged by the exchange.
An extreme funding rate doesn’t mean the market will reverse immediately. An overheated market can sometimes get even hotter for several more days.
Leave extra margin for your futures positions, and don’t let one sudden price swing force you out of your position.
People often ask what the funding rate means. This is how I understand it.
This money is settled between traders; it isn’t a fee charged by the exchange.
An extreme funding rate doesn’t mean the market will reverse immediately. An overheated market can sometimes get even hotter for several more days.
Leave extra margin for your futures positions, and don’t let one sudden price swing force you out of your position.