FUNDING -2%: SHORTS ARE BEING ERODED EVERY HOUR! 💀
Take a look at BTWUSDT. Its funding rate is currently -2% every 4 hours. That’s an extremely harsh rate for the Shorts!
With funding this deeply negative, Shorts have to pay Longs. With every funding interval, your account gets eaten away a little more. Even if the price drops and your Short position makes a profit, you still need to work out whether your gains are enough to cover the funding fees.
In particular, if funding fees are calculated based on the position’s notional value, then at -2% per interval, just 5 intervals add up to 10% of the position’s value. Even making a 100% profit on a trade might not be enough to cover these massive fees if you hold the position for a long time.
As for Longs, if you enter with a small position and manage your capital well, you have a chance to profit when the price rises and collect funding from Shorts while holding your position.
That’s also why I always emphasize the cumulative PNL approach: small position sizes, sound capital management, and patience. You don’t need to make one huge win—you just need to know where you stand in the game.
Take a look at BTWUSDT. Its funding rate is currently -2% every 4 hours. That’s an extremely harsh rate for the Shorts!
With funding this deeply negative, Shorts have to pay Longs. With every funding interval, your account gets eaten away a little more. Even if the price drops and your Short position makes a profit, you still need to work out whether your gains are enough to cover the funding fees.
In particular, if funding fees are calculated based on the position’s notional value, then at -2% per interval, just 5 intervals add up to 10% of the position’s value. Even making a 100% profit on a trade might not be enough to cover these massive fees if you hold the position for a long time.
As for Longs, if you enter with a small position and manage your capital well, you have a chance to profit when the price rises and collect funding from Shorts while holding your position.
That’s also why I always emphasize the cumulative PNL approach: small position sizes, sound capital management, and patience. You don’t need to make one huge win—you just need to know where you stand in the game.