Technical Note | $BIRB | Funding Rate -0.501% | Shorts Pay
Definition: Funding fees are calculated by multiplying the position's notional value by the rate. For a position with a notional value of 10,000 U, a rate of 0.01% means a fee of 1 U per funding period.
How to read it: Funding rates usually return to normal either through a price decline or by one side of the crowded trade exiting. Which scenario plays out depends on how open interest changes next.
Before trading with leverage, think through whether you can withstand the worst-case outcome, then consider what the indicators are telling you.
#BIRB
Definition: Funding fees are calculated by multiplying the position's notional value by the rate. For a position with a notional value of 10,000 U, a rate of 0.01% means a fee of 1 U per funding period.
How to read it: Funding rates usually return to normal either through a price decline or by one side of the crowded trade exiting. Which scenario plays out depends on how open interest changes next.
Before trading with leverage, think through whether you can withstand the worst-case outcome, then consider what the indicators are telling you.
#BIRB
