$ERA Latest funding rate: -0.151% (settled every 4 hours). Shorts pay; simply annualized based on this interval, it’s approximately 329.8%.
A beginner’s burning question: What exactly is the funding rate?
Perpetual contracts have no settlement date. The funding rate keeps the contract price anchored to the spot price: longs and shorts pay each other a fee at regular intervals.
When comparing rates, convert them to the same settlement interval: the same rate on a contract settled every 1 hour will be charged several times a day.
Knowing how to read indicators isn’t hard. The hard part is still following the rules when the market is most exciting.
A beginner’s burning question: What exactly is the funding rate?
Perpetual contracts have no settlement date. The funding rate keeps the contract price anchored to the spot price: longs and shorts pay each other a fee at regular intervals.
When comparing rates, convert them to the same settlement interval: the same rate on a contract settled every 1 hour will be charged several times a day.
Knowing how to read indicators isn’t hard. The hard part is still following the rules when the market is most exciting.