Are you trading Futures (perpetual contracts) and thinking that Shorting is a way to profit? Be careful, you may be experiencing 'silent withdrawals' every hour without realizing it! The story below will make you more alert than ever...
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💣 A 100,000 USDT Short – Thought it was profitable, but turns out to be 'bleeding' every hour!
In a market full of FOMO, you decide to open a Short order of 100,000 USDT on the MYXUSDT pair hoping for a price collapse. But... you didn't pay attention to a seemingly harmless number – Funding Rate: -1.7561% per hour.
Read again: NEGATIVE 1.7561%/hour!
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🧮 So what will happen?
👉 Quick calculation:
Funding Rate = -1.7561%
Short amount = 100,000 USDT
→ You have to pay = 100,000 × 1.7561% = 1,756.1 USDT per hour!
‼️ One hour loses nearly $1,800 – without even needing the price to move!
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📉 What is a negative Funding Rate?
Funding Rate is the payment fee between Longs and Shorts to maintain positions every hour (in this case, once per hour).
If the Funding Rate is positive → Longs pay Shorts
If the Funding Rate is negative → Shorts pay Longs
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⚠️ The trap of negative funding
When the Funding Rate is deeply negative, it indicates that the market has too many Short positions. And the exchange 'punishes' those following the crowd by forcing them to pay high fees to the Long side – as a psychological penalty.
So what if you Short for 10 hours?
> 1,756.1 USDT x 10 = Lose over 17,561 USDT in fees, even without a loss due to price!
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💡 Opportunity for the Long side!
Ironically, if you Long during a time of deep negative Funding Rate:
Not only benefiting if the price rises
And you also receive money from the Shorts every hour!
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🔥 A valuable lesson for Traders:
✅ Never enter a position without considering the Funding Rate!
✅ Deep negative Funding Rate = a sign that the market may reverse
✅ Sometimes you just need to hold Long at the right moment – no need to trade to see money flow into your wallet
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🎯 Conclusion:
Funding Rate is not just a number – it is the silent flow of money, where the lost and the gained are exchanged every hour. Don't let your Short position become a 'blood-sucking tap' that you can't see!
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> Do you want me to create a tool to automatically calculate Funding Rate and costs according to capital? Comment “🔥 Funding Tool” – I will gift it for free!
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If you find this article valuable, please save and share it to warn newcomers. Because sometimes, losing is not due to being on the wrong side, but because... you don't know you are bleeding!
#Write2Earn #MYX #coin #altcoin #crypto
