Example:
Rate +0.05% every 8 hours.
Position $100,000 (leverage, of course, is taken into account).
— Per day: +$150
— Per month: +$4,500
And this is without guessing and nerves, but it should be noted that the rate always changes and the example is just a formality!
Why this works:
The crowd is always skewed in one direction — either everyone is longing, or everyone is shorting. And they pay for their stubbornness to those who know how to play against!
Conclusion:
The funding rate is not just a number at the top of the terminal!
It is a tool. If you know how to calculate and hedge — you have an endless source of income! I personally know several teams that engage in arbitrage funding at a professional level!
