$ERA Latest funding rate: -0.252% (settled every 4 hours); shorts pay.
Folks, what exactly is a funding rate? Here's a quick explanation 👇
When the funding rate is positive, longs pay shorts; when it's negative, the opposite is true, and those holding short positions pay longs.
Some people treat extreme funding rates as a contrarian indicator, but there have also been cases where prices continued moving in one direction after funding rates became extreme.
Multiple indicators confirming one another is more reliable than looking at just one, but even a bunch of indicators can't provide a definite conclusion.
Folks, what exactly is a funding rate? Here's a quick explanation 👇
When the funding rate is positive, longs pay shorts; when it's negative, the opposite is true, and those holding short positions pay longs.
Some people treat extreme funding rates as a contrarian indicator, but there have also been cases where prices continued moving in one direction after funding rates became extreme.
Multiple indicators confirming one another is more reliable than looking at just one, but even a bunch of indicators can't provide a definite conclusion.