🐋 $SAND Current funding rate: -0.689% (settled every 8 hours); shorts pay.
Funding rates tend to reflect first where positions are piling up.
The annualized rate is simply the current rate extrapolated over a year. Rates change every settlement period, so don’t treat it as the actual cost for a year.
For those holding positions on the paying side, the more extreme the rate, the more they pay at each settlement, significantly increasing the cost of holding the position.
Understanding an indicator is about avoiding being misled by a single number, not using it to pinpoint tops and bottoms.
#SAND
Funding rates tend to reflect first where positions are piling up.
The annualized rate is simply the current rate extrapolated over a year. Rates change every settlement period, so don’t treat it as the actual cost for a year.
For those holding positions on the paying side, the more extreme the rate, the more they pay at each settlement, significantly increasing the cost of holding the position.
Understanding an indicator is about avoiding being misled by a single number, not using it to pinpoint tops and bottoms.
#SAND