$CT Latest funding rate: -0.254% (settled every 4 hours). Shorts pay; simply annualized based on this period, that's approximately 556.7%.
The side that positions are crowded on is usually reflected in the funding rate first.
You can think of the funding rate as rent on your position: whichever side pushes the contract price away from the spot price is usually the one that pays.
It’s far more reliable to work backward from where you’d place your stop-loss when sizing a position than to just guess.
I may be wrong, so don’t take this as advice.
The side that positions are crowded on is usually reflected in the funding rate first.
You can think of the funding rate as rent on your position: whichever side pushes the contract price away from the spot price is usually the one that pays.
It’s far more reliable to work backward from where you’d place your stop-loss when sizing a position than to just guess.
I may be wrong, so don’t take this as advice.