GLM Update:
[Market Maker’s Trick]
For $GLM , some people didn’t know the last round of dealer’s operation, so many people just went long or short at a high multiple without thinking, and then found that the funding rate deducted was more than the principal. Here is a basic introduction to the specific process.
First, glm seemed to be falling continuously, so many retail investors chose to short, but in just a few minutes, the increase was as high as 10%, and many retail investors were liquidated.
Then the price fluctuated in a small range, and many users chose to go long or short, so it was directly pulled up one by one and then fell another by one, and both long and short positions were liquidated.
Then the price of the coin rose slowly after the decline, and then many users chose to short, but the contract funding rate changed from 0.005% to -0.3% and then to negative 2%. Therefore, many retail investors choose to go long on contracts to get the funding rate. 50 times, 100u, the funding rate is 50*100*2%, and the 4h short-selling fee paid to the long-selling fee is 100u, so everyone is crazy about the fee rate.
Here is an explanation. If the funding rate is positive, the long-selling fee is paid to the short-selling fee, and if it is negative, the short-selling fee is paid to the long-selling fee. It is deducted according to the leveraged funds. The funding rate is so high. In fact, it is not that retail investors are shorting more, but that the dealer places short orders. You know, the fee rate will be calculated when the short order is placed. Then when it comes to the settlement fee rate, it will be directly reduced by one needle. The long-selling users will eat the fee rate of 2%, and they will ask you for 4% of your principal. In the end, most of them lose 2%. This is called long and short double eating.
It needs to be added that the funding rate will drop quickly after the short order placed by the dealer is cancelled. For example, if you see that the funding rate is 2% before 8 pm, it may drop to 0.3% at 12 o'clock. The purpose of this kind of dealer control is not only to eat the funding rate, but also to increase shipments. Don't be greedy for small gains and suffer big losses.
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