1 material about future markets
there is something called #Funding #Fee (FF)
where there are a lot of traders who don't understand this, and some people are confused about why the margin on #future is changing.
So, funding fees on Binance are like fees that are paid periodically between traders who hold long (buy) and short (sell) positions in the future market. This funding fee aims to ensure that coin prices between spot and future are not much different
What is positive FF and negative FF?
you can see in the picture. In essence, if the funding fee is positive, then the majority of traders are trading with a LONG position, while negative FF occurs because the majority of traders are short
The effect?
if FF is positive, then the long trader will pay a fee to the short trader. And conversely, if the FF is negative, the short trader will pay a fee to the long trader
When is the FF research? We can see it on the future market dashboard in the top right corner (Funding/Countdown)
answer? why do margins change so much?
found a new trading method? You can just focus on taking FF. So open a trade 1 minute before research, then later you will get a fee
Hopefully it's useful ❤️