#Funding rate Many friends don't understand the funding rate. The funding rate is very important and must be learned!
Here I will share with you some practical knowledge about the funding rate: the calculation and significance of the funding rate
The meaning of the funding rate:
1. The funding rate and countdown of each currency will be displayed in the upper right corner, and it is generally settled every 8-4 hours. (For example, the screenshot below)
If the rate is positive, the long position pays the short position fee; if it is negative, it is the opposite.
Generally, this can be used to see the long and short sentiment. For example, if the funding fee of a certain currency is -3%, it means that there are more short positions in this currency at the moment. If you also go short at this time, a larger fee will be deducted when settling the funding rate.
Some dog dealers will use this to deliberately pull the market to make money from this funding rate! !
2. Calculation of funding rate:
Funding rate minus cost = cost value position size * leverage * funding rate
For example:
30U cost value order leverage 10X funding rate -3%, the calculation is to deduct or earn 30*10*0.03=9U
$HBAR $WIF $BTC#Marketcallback, wait and see or get on board?
HBARUSDT
Perpetual
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