What does funding rate mean: Very important
1. The funding rate and settlement time will be displayed in the upper right corner of the coin, usually calculated every 8 hours. If the rate is positive, it means that the long-term person pays the short-term person; if it is negative, it is the other way around.
This can tell whether the market is bullish or bearish. For example, if the funding rate of a coin is -3%, it means that everyone is shorting, and if you also go short at this time, you may have to pay a lot of fees when settling. Some big investors make money from this.
2. How to calculate the funding rate: Funding rate cost = holding cost leverage multiple funding rate For example, if you open an order with $30, the leverage is 10 times, and the funding rate is -3%, then you need to pay or earn $30100.03 = $9
Does it feel much clearer this way?
