$GTC ｜Rate -1.02%｜Shorts pay
Before looking at fund flows, first understand the funding rate.
When the funding rate is positive, traders holding long positions pay those holding short positions; when it’s negative, the reverse is true: traders holding short positions pay those holding long positions.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of a cascade of stop-loss orders also increases.
Don’t place an order during the sharpest volatility. Wait for the candlestick to close, then take a look.
Before looking at fund flows, first understand the funding rate.
When the funding rate is positive, traders holding long positions pay those holding short positions; when it’s negative, the reverse is true: traders holding short positions pay those holding long positions.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price moves in the opposite direction, the risk of a cascade of stop-loss orders also increases.
Don’t place an order during the sharpest volatility. Wait for the candlestick to close, then take a look.