Explanation of funding fees equivalent to a Maserati
Funding fees are really not worth forcing yourself to squeeze,
Unless you have the speed of the Flash, and I just throw out the essentials
As long as your position is still there in the last second before settlement,
The system will calculate based on position size × funding fee rate.
Note, the margin must be multiplied by leverage to get the position size,
For example, if you have a margin of 10,000 USDT and open 10x leverage, the position size is 100,000 USDT,
At this point, if the funding fee rate is 0.1%, one order will cost you 100 USDT.
Don't think about opening a position 30 seconds before settlement to make money,
The exchange has already calculated the time discrepancies clearly,
The actual settlement window has a 15-second deviation; if you time it wrong, you will likely be countered.
Coins like $MAGIC can give you a 4-point fluctuation in 5 minutes,
The small funding fee is not enough to fill the hole.
Remember that funding fees are divided into positive and negative: a positive rate means the longs give a red envelope to the shorts,
The negative rate means the shorts give money to the longs; if you get it wrong, you’ll lose badly.
This thing is essentially a risk compensation mechanism,
If you get hit, you can collect some medical expenses, but if you didn’t get hit and still go to join the fun,
You could easily get taught a lesson by the market. There are indeed experts who specifically time the funding fees,
But it requires a high-frequency trading system and millisecond-level ordering,
For ordinary people, trying this is like catching flying knives with bare hands.
It's recommended for beginners to start with small positions; mainstream cryptocurrencies settle every 8 hours,
Others settle every 4 hours or 2 hours.
The funding fee rate can sometimes become a trap for inducing shorts or longs, so be careful not to fall into the pit.
If you find the useful information shared by Li Shen helpful, please give more attention.
