#fun
Do you know what is funding fees and how you can take benefits from it ?
=> Funding fees are periodic payments exchanged between long and short traders in perpetual futures to keep contract prices aligned with spot prices. If the funding rate is positive, longs pay shorts; if negative, shorts pay longs.
How Funding fees distributed ?
Funding fees is credited to the open positions automatically according to the funding rate when the count is over.
=
The formula is: Funding Fee = Position Size × Funding Rate
Example: If your position size is $100 and the funding rate is 2%, you’ll either pay or receive $1
You can earn from funding fees if you know how to earn from it 😉