What impact does the change in funding rate from 4 hours to now 1 hour have on our contract players?
1. Position cost doubles: Originally, you would get hit every 4 hours, now you get cut every hour. When going in the opposite direction, the cost can snowball, especially for overnight positions, so it's important to calculate this clearly.
2. High-frequency trading party time: Quantitative teams that excel at capturing funding rates will be popping champagne, as there are guaranteed arbitrage windows every hour, but it's 10086 times harder for retail traders to follow.
3. Risk of liquidation increases quietly: In extreme market conditions, funding rates could spike to ±2% every hour, and accounts with high leverage are susceptible to being hit by both funding rates and price movements. Remember to factor in funding costs when placing orders.
In simple terms, for trend traders: holding long positions is like paying rent, you have to renew every hour. For arbitrage traders: adjust your monitoring rhythm to TikTok mode, check the screen every 15 seconds. Newbies beware: before sleeping, either close your positions or deposit double the margin to prevent surprises.
Want to double your account, want to enjoy big profits, want to successfully recover losses?
Stay close, seize the main uptrend in the bull market in advance!