⚡ Understanding Binance Funding Rates: Are You Paying or Getting Paid?"
💡 If you're trading Binance Futures, funding rates can make or break your profits. Here’s a breakdown:
🔍 What Are Funding Rates?
A periodic payment between long and short traders, ensuring futures prices stay close to the spot price.
If the funding rate is positive, longs pay shorts.
If negative, shorts pay longs.
💰 Why It Matters:
1️⃣ Extra Income: Hold a short position during a positive funding rate and get paid!
2️⃣ Hidden Cost: Staying long with high positive rates? It eats into your profits.
3️⃣ Timing Tip: Enter positions when funding rates are neutral to avoid unnecessary fees.
📊 Pro Tip: Check funding rates in the Binance Futures dashboard before opening trades.
