Friends who follow me know that the funding rate of perpetual contracts is a target that I have been paying attention to recently. After so many days of high fees, today finally ushered in the pastoral time of long positions again
Let me say a few more words at the beginning.
What is a perpetual contract exchange?
A place where masters ruthlessly hunt rookies, but even top masters must tread on thin ice, otherwise they will become prey if they are not careful
Many people say, stay away from contracts. That's right. But if you stay away from contracts, then please stay away from short-term trading at the same time, because those who tell you to stay away from contracts don't understand that contract trading is dominant in short-term trading.
Before understanding contracts, any insights into short-term trading are just a glimpse of the leopard, and using old methods to operate short-term trading depends entirely on luck.
Super high funding rates have always been the main theme in the past month. In the past month, bullish sentiment has been extremely high, and the funding fees paid by longs to shorts are extremely high.
The high-fee long danger zone, the funding rate exceeds the interest rate of 70% (or 0.07% every 8 hours). If a long position goes long 3 times, the interest rate it needs to pay will exceed 200%.
It is not difficult to find the pattern. The purple area often appears at the local low point of the price, and the orange area is the danger zone.
If today still follows the pattern of the past month, then now is a rare opportunity to go long.
