Explanation of the funding fee equivalent to a Xiaomi SU7

This funding fee thing is really not necessary to forcefully squeeze,

Unless you have the speed of the Flash, I will directly share the key points

As long as your position is still there in the last second before settlement,

The system will calculate based on the nominal value of the position × funding fee rate.

Note, the principal must be multiplied by the leverage to get the nominal value,

For example, if your principal is 10,000 USDT and you open a 10x leverage,

The nominal value is 100,000 USDT,

At this point, if the funding fee rate is 0.1%, one order will charge you 100 USDT.

Don't think about opening a position 30 seconds before settlement to make money,

The exchange has already calculated the time discrepancy clearly,

The actual settlement window has a 15-second deviation, if you time it wrong, you'll likely get countered.

Like the $MAGIC kind of meme coin, it can give you a 4-point fluctuation in 5 minutes,

That little mosquito leg of a funding fee isn't enough to fill the hole.

Remember that the funding fee can be positive or negative: a positive rate means the longs give a red envelope to the shorts,

A negative rate means the shorts give money to the longs, mess it up and you'll lose big time.

This thing is essentially a risk compensation mechanism,

If you get hit, you can receive some medical expenses, but if you haven't been hit and still want to join the fun,

You can be taught a lesson by the market in no time. There are really experts who specifically time to squeeze funding fees,

But they need high-frequency trading systems + millisecond-level order placement,

For ordinary people, playing this is equivalent to catching flying knives with bare hands.

I recommend beginners to test the waters with a small position, mainstream coins settle once every 8 hours,

Others settle every 4 hours or 2 hours.

Funding fee rates can sometimes become traps for inducing shorts and longs, so be careful not to fall into it.

If you find the useful information shared by Chuanmu valuable, please give it more attention.