$Q current funding rate: -0.255% (settled every 4 hours). Shorts pay. Simply extrapolated from this period, the annualized rate is about 558.7%.
While we're on the subject, let's talk about funding rates.
The annualized rate is simply the current rate multiplied across 365 days. Rates change every period, so don't treat this as a guaranteed annualized figure.
Some people view extreme funding rates as a contrarian indicator, but there have also been cases where prices continued moving in the same direction even after funding rates became elevated.
Keep extra margin on your futures positions, so a single wick doesn't wipe them out.
While we're on the subject, let's talk about funding rates.
The annualized rate is simply the current rate multiplied across 365 days. Rates change every period, so don't treat this as a guaranteed annualized figure.
Some people view extreme funding rates as a contrarian indicator, but there have also been cases where prices continued moving in the same direction even after funding rates became elevated.
Keep extra margin on your futures positions, so a single wick doesn't wipe them out.