#资金费率 Many friends do not understand the funding rate, the funding rate is very important, you must learn it!
Here I share some practical knowledge about the funding rate: the calculation and significance of the funding rate.
The meaning of the funding rate:
1. The upper right corner of each currency will display the funding rate and countdown for that currency, usually settled every 8-4 hours. (For example, in the screenshot below)
If the rate is positive, the long position pays the short position; if it's negative, vice versa.
Generally, you can see the long-short sentiment from this. For example, if a certain currency's funding rate is -3%, it means that there are more short positions for this currency at the moment. If you also go short at this time, the settlement of the funding rate will deduct a larger fee.
Some manipulators will use this to deliberately pump the price to profit from the funding rate!
2. Calculation of the funding rate:
Funding rate deduction = cost value of position size * leverage * funding rate
For example:
30U cost value opening a position with 10X leverage and a funding rate of -3% means that you need to deduct or earn 30*10*0.03=9U
