A quick note: $T currently has a funding rate of -0.126% (settled every hour). Shorts pay, and simply annualized based on this period, that’s about 1105.8%.
People often ask what the funding rate means, so here’s my take.
The rate is mainly made up of two parts: the premium of the contract over spot, plus a fixed interest-rate component. When the premium isn’t large, most contracts come out to around 0.01% when converted to an 8-hour basis.
A one-sided funding rate doesn’t mean an immediate reversal. Sometimes overheated sentiment can stay hot for a while longer.
Don’t place an order at the most volatile moment. Wait for the candlestick to close before deciding.
#T
Stay rational. Don’t get carried away.
People often ask what the funding rate means, so here’s my take.
The rate is mainly made up of two parts: the premium of the contract over spot, plus a fixed interest-rate component. When the premium isn’t large, most contracts come out to around 0.01% when converted to an 8-hour basis.
A one-sided funding rate doesn’t mean an immediate reversal. Sometimes overheated sentiment can stay hot for a while longer.
Don’t place an order at the most volatile moment. Wait for the candlestick to close before deciding.
#T
Stay rational. Don’t get carried away.
