๐จ Funding Fee โ What Most Traders Ignore But Shouldn't! ๐ฐ
Listen up fam! This little thing called funding fee can make or break your profits on Binance Futures โ and trust me, if you're not watching it, you're sleeping on money! ๐ง
Hereโs how it really works ๐
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๐ก What Is a Funding Fee?
Itโs a fee paid between traders, NOT to the exchange.
It keeps the futures price in check with the spot price. ๐ฅ
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โ Who Pays? Who Receives?
If funding is positive โ
๐ Longs pay Shorts ๐ธ
So if youโre long, YOU PAY.
If youโre short, YOU GET PAID.
If funding is negative โ
๐ Shorts pay Longs ๐ธ
So if youโre long, YOU GET PAID! ๐
If youโre short, YOU PAY.
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๐ Real Example (Calculated):
You open a long position on BTC/USDT.
Position size: $10,000
Funding rate: -0.0300%
Funding paid every: 8 hours
โ Since funding is negative, youโre a long, you receive:
๐งฎ Calculation:
$10,000 ร 0.0300% = $3 every 8 hours
Hold for 24 hours = $9 earned without doing anything extra! ๐ธ๐ฅ
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But careful ๐
Same position with +0.0100% funding
Now YOU pay:
$10,000 ร 0.0100% = $1 every 8 hours = $3 loss per day (even if price doesnโt move!)
Thatโs why pros always watch this. Itโs free edge ๐ฏ
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๐ You can check the funding rate live on Binance Futures โ itโs always shown under the trading pair.
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