Friends, this is something you absolutely need to understand: funding rates!
Binance funding rates are mainly made up of the premium index and the interest rate. The farther the contract price is above or below the price index, the farther the rate usually moves from its baseline.
When the contract price is higher than the spot price, the rate is usually positive, meaning longs have to pay. This raises the cost of holding a long position and gives the contract price an incentive to move closer to the spot price.
By the way: $BTC reports 80410.01, 24h +2.51%.
Save this for now and take a closer look later 👇
#BTC
Binance funding rates are mainly made up of the premium index and the interest rate. The farther the contract price is above or below the price index, the farther the rate usually moves from its baseline.
When the contract price is higher than the spot price, the rate is usually positive, meaning longs have to pay. This raises the cost of holding a long position and gives the contract price an incentive to move closer to the spot price.
By the way: $BTC reports 80410.01, 24h +2.51%.
Save this for now and take a closer look later 👇
#BTC