$SAND Current funding rate: -0.518% (settled every 8 hours); shorts pay.
Let’s use this figure to break down funding rates.
The rate consists of two parts: the premium of the contract relative to spot, plus a base interest component. When the premium is small, most contracts are around 0.01% per 8-hour period.
Deeply negative funding rates sometimes occur when shorts are overly concentrated. A commonly cited risk is that shorts may be forced to cover, pushing prices up—but that’s only one possibility.
Calculating your order size based on your stop-loss distance is much more reliable than choosing a position size by feel.
Stay rational; don’t get carried away.
Let’s use this figure to break down funding rates.
The rate consists of two parts: the premium of the contract relative to spot, plus a base interest component. When the premium is small, most contracts are around 0.01% per 8-hour period.
Deeply negative funding rates sometimes occur when shorts are overly concentrated. A commonly cited risk is that shorts may be forced to cover, pushing prices up—but that’s only one possibility.
Calculating your order size based on your stop-loss distance is much more reliable than choosing a position size by feel.
Stay rational; don’t get carried away.