🐋 $Q Current funding rate: -0.255% (settled every 4 hours). Shorts pay; simply annualized based on this period, that’s approximately 558.7%.
The direction positions are becoming crowded in is usually reflected in the funding rate first.
The funding rate consists of two parts: the contract’s premium over spot, plus a fixed interest-rate component. When the premium is very small, most contracts are around 0.01% on an 8-hour basis.
With leveraged positions, first calculate whether you can withstand the worst-case outcome, then consider what the indicators say.
The direction positions are becoming crowded in is usually reflected in the funding rate first.
The funding rate consists of two parts: the contract’s premium over spot, plus a fixed interest-rate component. When the premium is very small, most contracts are around 0.01% on an 8-hour basis.
With leveraged positions, first calculate whether you can withstand the worst-case outcome, then consider what the indicators say.