$IN ｜Funding rate -1.38%｜Shorts pay｜Current price 0.0321
What is a funding rate? It mainly consists of two parts: the premium of the contract over the spot price, plus a base interest rate. When the premium is small, the 8-hour equivalent rate for most contracts tends to stay around 0.01%.
When the rate returns to normal, it’s generally because the price has corrected or crowded positions have been closed. To tell which, you need to look at how open interest moves afterward.
Sizing your position based on the distance to your stop-loss is much more reliable than going by feel.
Just sharing—not investment advice.
What is a funding rate? It mainly consists of two parts: the premium of the contract over the spot price, plus a base interest rate. When the premium is small, the 8-hour equivalent rate for most contracts tends to stay around 0.01%.
When the rate returns to normal, it’s generally because the price has corrected or crowded positions have been closed. To tell which, you need to look at how open interest moves afterward.
Sizing your position based on the distance to your stop-loss is much more reliable than going by feel.
Just sharing—not investment advice.