How to Avoid Fees in a High Funding Rate Environment: Funding Rate Hedging Strategy

If you want to hold positions in a high funding rate environment without paying high funding fees, you can use the **“Funding Rate Hedging”** method.

The specific operation is to open an equal-sized reverse position before the funding rate settlement. Many large exchanges (such as OKX) support a dual-position feature, allowing you to hold both long and short positions simultaneously.

It is important to note that while funding rate hedging can avoid funding fees, you still need to consider trading fees. However, if you use limit orders to enter and exit, and combine it with fee reduction policies, the overall cost is usually lower than directly paying the funding fee.

However, it is particularly important to remind that: it is not recommended to blindly hold positions. If it reaches the stop-loss position, you should decisively cut losses. Holding through 9 times may still result in liquidation on the 10th time; managing risk is always more important than hedging techniques.