Market Notes | $IOTX | Funding Rate -0.167% | Shorts Pay
Definition: The annualized funding rate is simply the current rate multiplied over a year. Since the rate changes each period, don’t treat it as the actual cost for a year.
Common interpretation: Funding rates on less liquid coins tend to fluctuate more. An extreme rate in a single period doesn’t necessarily indicate a trend, while extreme rates on top coins are much rarer.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
Volatility is significant; use leverage within your means.
Definition: The annualized funding rate is simply the current rate multiplied over a year. Since the rate changes each period, don’t treat it as the actual cost for a year.
Common interpretation: Funding rates on less liquid coins tend to fluctuate more. An extreme rate in a single period doesn’t necessarily indicate a trend, while extreme rates on top coins are much rarer.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
Volatility is significant; use leverage within your means.