Please can you explain this funding for futures for me, it is not clear.

It’s been a week again. This week we have a very active market! Overall it did me good.

I am going to be honest, when I was trading $AERGO I got trapped but luckily the funding was handing out money while I wait for my exit. BUT, it wasn’t a pleasant waiting experience! The fundings gave me around 1000 in total during my wait.

For those who are still wondering why is the funding sometimes negative and sometimes positive. Positive funding means long pays short.

Ex. If the funding time is here and you are in long position , you will need to pay a fee and some of those fees will be given to shorting positions .

If negative fundings, vice-versa.

Remember funding rate do changes depending on number or players and trades. For scalp players we try to avoid fundings unless we are trap. But for long term traders check your winnings. And check the funding rates.

Last, you can check your funding rate by clicking on the funding rate on the top right of the contract you are on.

Also don’t get greedy, I got stuck in one this week because I wanted to wait for the funding and got trapped inside for hours… as soon as the funding distribute the price will most likely NOT in your favor.
DONT BE LIKE ME

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