Funding Rate
I saw today
Many have shorted $MYX and faced a loss. They should read the article carefully and remember it.
Future market long
(long) and the payment that occurs between long and short position holders is essentially the Funding Rate.
1/ If funding rate
If it becomes positive, then the traders taking long positions pay the traders taking short positions
2/ And if funding rate
If it becomes negative, then the traders taking short positions pay the traders taking long positions
Now you might be wondering how and what payment it gives
- Exchanges mainly
Calculates the fee from traders by calculating the percentage of Funding Rate and gives it to the accounts of the opposite eligible traders, in simple terms
Today, the funding rate of $MYX is -2%,
-Those who will short
Calculates the position of the futures account and deducts 2% fee from there, which is distributed to the accounts of those who are Long
That’s why Funding negative
If it is there, everyone starts taking their opposite position so that Funding fee is not needed and is received in the opposite way 😁
Latest Funding Positive
Even if it exists, the same thing happens in the opposite direction, such as
-When Funding rate
If it turns positive then everyone stops doing Long and opens Short.
