NEGATIVE FUNDING and what you should know!!!
For example this QTUM very bullish movement and make a price gap between spot and future price.
This gap give trader bad consequences, many trader will try to short QTUM right away because the sudden change of price, but what happen next?
short trader will trapped on volatile price because market maker make another green candle either make short trader liauidated, hit stop loss or worst scenario trapped.
last scenario you force to hold high floating loss and need to pay high negative funding.
negative funding = short pay long trader
positive funding = long pay short trader
you get maximum 3% funding
every time interval 2/4/8 hourly
example roughly
you short QTUM with 100$ margin , 20x leverage. which your margin became 2000$
with negative funding 3%
3% x 2000$ = 60$ per 3/4/8 hourly
