📌 What is the funding rate and why do beginners lose money with it?
In trading, the funding rate is something simple but extremely important. Many people ignore it, and that is a mistake. You can have the right position and the market can move in your favor… but the money slips away because you pay fees every eight hours.
🔍 How does it work?
- Positive funding rate → those in long positions pay
- Negative funding rate → those in short positions pay
💵 Beginners often fall into this trap:
They hold a position, pay the fee, and do not realize that their profit gradually disappears—especially when the rate is high.
⛔️ For example:
If you have a long position and the rate is 0.06% → in 10 days you lose 1.8% of your position. And that's without counting price movements!
✅ What should you do?
- Regularly monitor the rates
- Do not hold your positions for too long
- Include this in your strategy
🧠 Trading is not just direction, it is also mathematics.
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