đđž Funding rates are periodic payments between long and short traders to keep perpetual futures prices tethered to the spot market. If the rate is positive, longs pay shorts. If negative, shorts pay longs. This exchange happens every 8 hours.
Let's say you're in a $1,000 long position with a typical 0.01% positive funding rate. You'd pay $0.10 every 8 hours. That's $0.30 daily! Sounds small, right? But for a $10,000 position, that's $3 a day, or $90 a month, silently eating into your profits or worsening your losses. I've been there, ignoring these small deductions only to see my P&L mysteriously shrink over days. Always check the funding rate *before* you open a position. It's clearly displayed on your trading screen!
#FuturesTrading #FundingRates #BinanceSquare #CryptoTips #TradingMistakes
Let's say you're in a $1,000 long position with a typical 0.01% positive funding rate. You'd pay $0.10 every 8 hours. That's $0.30 daily! Sounds small, right? But for a $10,000 position, that's $3 a day, or $90 a month, silently eating into your profits or worsening your losses. I've been there, ignoring these small deductions only to see my P&L mysteriously shrink over days. Always check the funding rate *before* you open a position. It's clearly displayed on your trading screen!
#FuturesTrading #FundingRates #BinanceSquare #CryptoTips #TradingMistakes