Market Notes｜$SAND ｜Funding rate: -0.956%｜Shorts pay｜Current price: 0.06216
Definition: When the funding rate is positive, traders holding long positions pay those holding short positions; when it is negative, the direction is reversed, and shorts pay those holding long positions.
How to read it: Deeply negative funding rates are sometimes seen when shorts are overly concentrated. A commonly cited risk is that shorts may be forced to cover, driving prices higher—but this is only one possibility.
Avoid placing orders during the most volatile few minutes. Wait for the price to stabilize before taking a closer look.
Definition: When the funding rate is positive, traders holding long positions pay those holding short positions; when it is negative, the direction is reversed, and shorts pay those holding long positions.
How to read it: Deeply negative funding rates are sometimes seen when shorts are overly concentrated. A commonly cited risk is that shorts may be forced to cover, driving prices higher—but this is only one possibility.
Avoid placing orders during the most volatile few minutes. Wait for the price to stabilize before taking a closer look.