Just like that. I gave an example of Short squeeze using $FUN and boy oh boy Shorters got REKT brutally.

Concepts of funding fee in futures and $FUN

Positive Funding Fee : Longs pay to Shorts. Market sentiment is bullish and traders expect prices to go up.

Risk: Tank downwards suddenly, liquidating longs (Long REKT).

Negative Funding Fee : Shorts pay to Longs. Market sentiment is bearish and trades expect prices to go down.

Risk: Bounce upward suddenly, liquidating shorts (short squeeze).

Fun is currently experiencing heavily negative Funding Fee which means there are way too many Shorts open at this time as price is 3 folds up, and there are good chances that a short squeeze might occur.

Nevertheless the market is unpredictable and we could see the #fun tank.

#futures #futuresignal #trading #FundingRates