Let’s calculate the cost of holding a position: $BTW . The current funding rate is -0.106%, settled every 4 hours, equivalent to an annualized rate of about 232.2%.
In other words, shorts pay longs every funding period, so the longer you hold a short position, the more you’re on the back foot. Once the price stops falling, short covering can easily push it higher.
Would you trade in a market like this?
In other words, shorts pay longs every funding period, so the longer you hold a short position, the more you’re on the back foot. Once the price stops falling, short covering can easily push it higher.
Would you trade in a market like this?