🔥 How traders make money even when the price is stagnant? 👀
If you haven't heard about Funding yet — then you definitely need to check this out👇
This is a mechanism in futures that keeps the futures price close to the spot price. Important: this is not an exchange fee, but a transfer of money between traders.
📌 How it works Funding is usually charged every 8 hours:
Positive funding — longs pay shorts (the market is overheated upwards)
Negative funding — shorts pay longs (pushing downwards)
The stronger the imbalance of positions, the higher the payments. The accrual happens automatically, without closing the trade.
💰 How to earn on funding This is where things get interesting 👇
1️⃣ Receiving funding If funding is positive — it's more profitable to hold a short position, if negative — a long position.
You can earn 0.01–0.1% every 8 hours, which in a calm market gives 10–30% per annum
2️⃣ Funding arbitrage (smart option) You open:
long on the spot
short on the futures
The price becomes almost irrelevant — you earn on funding, minus fees.
📉 The risk is lower, especially with minimal leverage
💡Conclusion:
Funding is one of the few ways to earn even in a flat market if you act disciplined and without greed
