$AVA Current funding rate: -0.05% (settled every 4 hours), with shorts paying.
Let’s break this number down.
When the contract price is above the spot index, the funding rate is usually positive, and longs pay. When it’s below the spot price, the rate is usually negative, and shorts pay.
The funding rate only reflects the long/short bias in the contract market; it doesn’t indicate spot demand.
Sizing your position based on the stop-loss distance is much more reliable than guessing.
Let’s break this number down.
When the contract price is above the spot index, the funding rate is usually positive, and longs pay. When it’s below the spot price, the rate is usually negative, and shorts pay.
The funding rate only reflects the long/short bias in the contract market; it doesn’t indicate spot demand.
Sizing your position based on the stop-loss distance is much more reliable than guessing.