$GTC Latest funding rate: -0.114% (settled every 4 hours); shorts pay.
Let's use this figure to break down funding rates.
Funding fees are deducted from your margin or credited to your account. The longer you hold a position, the greater the cumulative impact.
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 also increases.
Extreme readings usually signal larger swings. In such cases, it's better to reduce leverage rather than add to your position.
Let's use this figure to break down funding rates.
Funding fees are deducted from your margin or credited to your account. The longer you hold a position, the greater the cumulative impact.
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 also increases.
Extreme readings usually signal larger swings. In such cases, it's better to reduce leverage rather than add to your position.