Let's calculate the cost of holding a position: $KAT . The current funding rate is -0.358%, settled every 4 hours, equivalent to an annualized rate of about 784.3%.
In other words, holding a short means paying longs every funding period. The longer you hold a short, the more you’re at a disadvantage. If the price stops falling, short covering can easily push it up.
Would you check the funding rate before placing a trade?
NFA, DYOR.
In other words, holding a short means paying longs every funding period. The longer you hold a short, the more you’re at a disadvantage. If the price stops falling, short covering can easily push it up.
Would you check the funding rate before placing a trade?
NFA, DYOR.