Technical Note｜$MEW ｜Rate -1.2%｜Shorts pay
Definition: Think of the funding rate as rent for holding a position: whichever side pushes the contract price away from the spot price is usually the side that pays.
How to read it: The funding rate should usually be considered alongside open interest and price. When the rate is high and open interest is surging, leverage is typically more pronounced.
The same reading can mean very different things in different market conditions, so don't blindly apply a rule of thumb from a single observation.
#MEW
Definition: Think of the funding rate as rent for holding a position: whichever side pushes the contract price away from the spot price is usually the side that pays.
How to read it: The funding rate should usually be considered alongside open interest and price. When the rate is high and open interest is surging, leverage is typically more pronounced.
The same reading can mean very different things in different market conditions, so don't blindly apply a rule of thumb from a single observation.
#MEW