How much is the annualized funding fee for a 1x short contract in the currency standard?
If the funding rate is positive for a long time
You can get a profit of 0.001 times the value of your position every 8 hours
But if it is positive for a long time, it must be a bull market
Even if your short position is 1x, you will still lose a lot
Even if you don’t have a huge margin, your position will be liquidated
If you have a huge margin, what else would you do to earn this 1/1000 profit?
If it is negative for a long time, you will make a profit on your short position, but you will have to pay the long position funding fee every 8 hours. For a double perpetual contract, all the money earned will be used to replenish the long position
In actual situation, whether it is a bull market or a bear market, the rise and fall are frequent, and the positive and negative divergence between the index and the spot can change at any time
You can't make money from the funding rate just by opening a contract, not to mention that you will lose the watermelon and make sesame money. Generally, you buy spot,
and use perpetual short to hedge. It's too late for you to open and close positions manually
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