$AIA The funding rate has reached -0.53%, and it is charged once every hour, which is indeed a very dangerous signal: for beginners, it feels more like a trap than an opportunity.
💸 Understanding the funding rate: the 'subsidy' and costs for short sellers
First, let's correctly understand what the mentioned funding rate of ‘-0.53%’ means:
· The negative funding rate indicates that short sellers (bearish) need to pay fees to long holders (bullish).
· If you are on the short side, then for each settlement period, you need to pay a fee from your margin to the long side.