The current funding rate for $ARK is -0.437% (settled every 1 hour), so shorts pay.
Let’s break that down.
Think of the funding rate as rent for holding a position: whichever side pushes the contract price away from spot is usually the one that pays.
A return to normal usually comes either from a price correction or from the crowded side closing positions. You’ll need to watch how open interest changes afterward to tell which is happening.
Leave yourself some room when trading with leverage—don’t let one sudden move force you out of your position.
Let’s break that down.
Think of the funding rate as rent for holding a position: whichever side pushes the contract price away from spot is usually the one that pays.
A return to normal usually comes either from a price correction or from the crowded side closing positions. You’ll need to watch how open interest changes afterward to tell which is happening.
Leave yourself some room when trading with leverage—don’t let one sudden move force you out of your position.