Praise

#资金费率 Many friends do not understand the funding rate, the funding rate is very important, you must learn it!

Here, I would like to share some practical knowledge about the funding rate: the calculation and significance of the funding rate.

Meaning of the funding rate:

1. The upper right corner of each cryptocurrency will display the funding rate of that coin and a countdown, generally settling every 8-4 hours. (For example, in the screenshot below) However, there are exceptions where it settles every hour.

If the rate is positive, long positions pay fees to short positions; if negative, the reverse is true.

Generally, this can indicate the long-short sentiment; for example, if a certain cryptocurrency has a funding rate of -3%, it means that there are more short positions being taken on that coin at the moment. If you also go short at this time, you will incur a larger fee when settling the funding rate (opening a short at -3% means a deduction of three points from the margin when settling once).

Some manipulators will use this to deliberately pump the price to profit from the funding rate!!

2. Calculation of the funding rate:

Funding rate cost deduction = Cost value position size * Leverage * Funding rate

For example:

Cost value of 30U opening a position with 10X leverage and a funding rate of -3%, the calculation would show that you need to deduct or earn 30*10*0.03=9U

$HBAR $WIF $BTC #市场回调，观望还是上车？
{future}(HBARUSDT)