Dev_Kamaldeen
Occasional Trader
1.4 Years
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Funding Rates
Funding rates matter. They shape every Binance Futures trade you open.
Here’s what you need to know—fast and clear:
• What they are:
A periodic payment exchanged between long and short traders to keep prices aligned with spot.
• How they work:
Positive rate → Longs pay shorts.
Negative rate → Shorts pay longs.
• Why they exist:
Perpetual futures have no expiry, so funding balances the market and prevents price gaps.
• How to calculate them:
Funding = Position Size × Funding Rate (charged every 8 hours).
• How to use them to your advantage:
Avoid trades during extreme funding, open positions after funding is paid, and earn funding by taking the opposite side of market crowding.
#Binance #BinanceFuture #CryptoEducation #TradingTips #FuturesTrading #MarketInsight #CryptoAfrica #BNBChain.
$BNB
$BTC
$ETH
Here’s what you need to know—fast and clear:
• What they are:
A periodic payment exchanged between long and short traders to keep prices aligned with spot.
• How they work:
Positive rate → Longs pay shorts.
Negative rate → Shorts pay longs.
• Why they exist:
Perpetual futures have no expiry, so funding balances the market and prevents price gaps.
• How to calculate them:
Funding = Position Size × Funding Rate (charged every 8 hours).
• How to use them to your advantage:
Avoid trades during extreme funding, open positions after funding is paid, and earn funding by taking the opposite side of market crowding.
#Binance #BinanceFuture #CryptoEducation #TradingTips #FuturesTrading #MarketInsight #CryptoAfrica #BNBChain.
$BNB
$BTC
$ETH
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