The market has improved recently, and many new friends have entered the cryptocurrency circle. Many friends do not understand what the funding rate is? Nanfeng will briefly explain to you here
The meaning of the funding rate:
1. The funding rate and countdown of each currency will be displayed in the upper right corner, and it is generally settled once every 8 hours.
If the rate is positive, the long position will pay the short position fee; if it is negative, it is the opposite.
Generally, this can be used to see the long and short sentiments. For example, if the funding fee of a certain currency is -3%, it means that it is basically shorting. If you go short at this time, a large fee will be deducted when settling the funding rate.
Some dog dealers will use this to deliberately pull the market to earn this funding rate.
2. Calculation of funding rate:
Funding rate minus cost = cost value position size * leverage * funding rate
For example:
10U cost value order leverage 10X funding rate - 3%, the calculation is to deduct or earn 10*10*0.03=3U
