$SOPH ｜Rate: -0.157%｜Shorts pay
Before discussing funding, first understand the funding rate.
You can think of the funding rate as a toll for holding a position: whichever side pushes the contract price away from spot is usually the side that pays.
The rate generally returns to normal either through a price correction or by the crowded side exiting. To tell which, consider how open interest changes next.
Sizing your position by working backward from where you’ll place your stop-loss is much steadier than guessing.
#SOPH
Before discussing funding, first understand the funding rate.
You can think of the funding rate as a toll for holding a position: whichever side pushes the contract price away from spot is usually the side that pays.
The rate generally returns to normal either through a price correction or by the crowded side exiting. To tell which, consider how open interest changes next.
Sizing your position by working backward from where you’ll place your stop-loss is much steadier than guessing.
#SOPH