Technical note | $IOTX | Funding rate -0.642% | Shorts pay
First, the definition: Perpetual contracts have no delivery date. The funding rate keeps the contract price anchored to the spot price: long and short positions pay each other a fee periodically.
How to read it: The further the rate deviates from normal, the more crowded one side’s positions are—and the greater the risk of cascading stop-losses if the price reverses.
Don’t chase a trade during the most volatile moment. Wait for the price to stabilize before deciding.
#IOTX
First, the definition: Perpetual contracts have no delivery date. The funding rate keeps the contract price anchored to the spot price: long and short positions pay each other a fee periodically.
How to read it: The further the rate deviates from normal, the more crowded one side’s positions are—and the greater the risk of cascading stop-losses if the price reverses.
Don’t chase a trade during the most volatile moment. Wait for the price to stabilize before deciding.
#IOTX