🐳 Funding Fee in Crypto Futures – How Smart Money Uses It
Most traders don’t realize that funding fees can make or break your trade! Here’s how to use them like smart money 🐳👇
🔹 What is Funding Fee?
💰 Longs pay Shorts (Positive Rate)
🛑 Shorts pay Longs (Negative Rate)
🔄 Payment directly between traders, not the exchange
🔹 Why It Matters
⚖️ Keeps futures price aligned with spot
⚠️ Extreme rates = retail trap
🐳 Smart money watches crowded trades
🔹 Funding Rate Signals
Funding Rate
Who Pays Whom
Market Signal
+ Positive
Long → Shorts
Retail Longs Crowded 📈
- Negative
Short → Long
Retail Shorts Crowded 📉
🔹 Smart Money Strategy
🔑 Spot extreme funding & liquidity zones
⚡ Combine FVG + BOS/CHoCH
🛡️ Check leverage & risk
🔹 Example
🔥 BTC funding +0.05% → paying shorts
⚠️ Spikes to +0.20% → whales trap longs!
⚠️ Disclaimer
Educational Only. Not financial advice. DYOR.
