$BTW current funding rate: -0.407% (settled every 4 hours), with shorts paying.
Let's use this figure to break down funding rates.
When the contract price is higher than the spot index, the rate is often positive, and longs pay; when it is below spot, the rate is usually negative, and shorts pay.
The further the rate deviates from normal, the more crowded one side's positions are. If the price moves in the opposite direction, the risk of cascading stop-losses increases.
Indicators can fail, so don't skip your stop-loss: thinking ahead about what you'll do if you're wrong matters more than getting the prediction right.
Let's use this figure to break down funding rates.
When the contract price is higher than the spot index, the rate is often positive, and longs pay; when it is below spot, the rate is usually negative, and shorts pay.
The further the rate deviates from normal, the more crowded one side's positions are. If the price moves in the opposite direction, the risk of cascading stop-losses increases.
Indicators can fail, so don't skip your stop-loss: thinking ahead about what you'll do if you're wrong matters more than getting the prediction right.