Post
CryptoFrancoARG
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Bullish🧠 The Funding Rate is costing you money and you probably don't even know it
Most futures traders only look at the price. But there’s a number that silently drains (or boosts) your account every 8 hours.
It's called the Funding Rate.
What is it?
In perpetual futures, there's no expiration date, so Binance uses the Funding Rate to keep the future price aligned with the actual spot price.
→ If the market is super bullish (lots of longs): the funding is positive. Longs pay the shorts.
→ If the market is super bearish (lots of shorts): the funding is negative. Shorts pay the longs.
It gets charged every 8 hours: 00:00 · 08:00 · 16:00 UTC.
Why does it matter?
Imagine you have a long position in an altcoin with a funding rate of +0.10% every 8 hours.
That’s 0.30% per day → 9% per month that you pay just to keep the position open.
Your trade might go in the right direction and still end up in a loss.
How to use it to your advantage 👇
01 · Use it as a sentiment indicator
High funding = euphoria = possible top. Very negative funding = panic = possible bottom. It's one of the best contrarian indicators in the market.
02 · Avoid holding long positions in altcoins with high funding.
The cost accumulates quickly. Either enter right after the charge, or use spot if your idea is long-term.
03 · Some people do "funding farming"
They open a long position in spot + short in futures (delta neutral) and collect the funding without price exposure. It’s not for beginners, but it exists.
📍 You can see the Funding Rate in real-time on Binance Futures → for each pair, below the price.
Check it before every trade. It’s free information that very few people use.
💬 Did you know the Funding Rate existed? Tell me below 👇
⚠️ Risk warning: trading futures involves a high risk of capital loss. This is not financial advice. $ARIA
Most futures traders only look at the price. But there’s a number that silently drains (or boosts) your account every 8 hours.
It's called the Funding Rate.
What is it?
In perpetual futures, there's no expiration date, so Binance uses the Funding Rate to keep the future price aligned with the actual spot price.
→ If the market is super bullish (lots of longs): the funding is positive. Longs pay the shorts.
→ If the market is super bearish (lots of shorts): the funding is negative. Shorts pay the longs.
It gets charged every 8 hours: 00:00 · 08:00 · 16:00 UTC.
Why does it matter?
Imagine you have a long position in an altcoin with a funding rate of +0.10% every 8 hours.
That’s 0.30% per day → 9% per month that you pay just to keep the position open.
Your trade might go in the right direction and still end up in a loss.
How to use it to your advantage 👇
01 · Use it as a sentiment indicator
High funding = euphoria = possible top. Very negative funding = panic = possible bottom. It's one of the best contrarian indicators in the market.
02 · Avoid holding long positions in altcoins with high funding.
The cost accumulates quickly. Either enter right after the charge, or use spot if your idea is long-term.
03 · Some people do "funding farming"
They open a long position in spot + short in futures (delta neutral) and collect the funding without price exposure. It’s not for beginners, but it exists.
📍 You can see the Funding Rate in real-time on Binance Futures → for each pair, below the price.
Check it before every trade. It’s free information that very few people use.
💬 Did you know the Funding Rate existed? Tell me below 👇
⚠️ Risk warning: trading futures involves a high risk of capital loss. This is not financial advice. $ARIA