Seeing that some people don't understand Funding fees, I wrote this article:
Funding fees are a tool created to balance the price between Spot and Future prices
If Funding is negative, the Short side pays the Funding fee to the Long side
If Funding is positive, the Long side pays fees to the Short side
Funding pays 8 hours a day (some coins pay every 4 hours), 7am, 3pm, 11pm Vietnam time. Anyone who holds an order after this time frame will receive + or deduct the corresponding Funding fee
Negative Funding fees often occur when the market has a strong downtrend, signaling a rebound in the uptrend. The more negative funding, the stronger the growth.
Positive Funding is the opposite. Hit both your psychology and your wallet
Funding fee calculated = Total position volume x funding fee rate
For example, if you bet 100U on leverage 20, the funding fee is 1%, then you will gain or lose = (100 x 20 x 1) /100 = 20$
