⚠️ Truth about Funding Fees:
I see many people confused and asking about funding fees, so let me explain it in simple words.
In futures trading, you don’t only make or lose money from price movement. There is also something called funding fee working in the background.
Funding is paid every 1h, 4h, or 8h depending on the pair.
If most people are LONG, then LONGS pay SHORTS
If most people are SHORT, then SHORTS pay LONGS
So this money is moving between traders, not going to Binance.
⚠️ Important part:
Even if price doesn’t move, you can still lose money just by holding a position.
And yes, some traders don’t even care about price. They hold positions just to collect funding.
When funding becomes very high, it usually means the market is too crowded on one side and a trap is being built.
We saw exactly this in RIVER. Some people were paying a lot, some were getting paid.
Always check funding before holding any futures trade. It can save you a lot of money.
