Funding Rate Tutorial (Simple & Practical)
Step 1: Understand funding Funding is the fee traders pay to keep positions open. It is exchanged between longs and shorts, not paid to the exchange.
Step 2: Read the sign
Negative funding â Shorts pay longs
Positive funding â Longs pay shorts
Step 3: Real examples
$RIVER funding: -0.73763% (hourly)
If you short, you pay a high fee every hour. This makes holding shorts expensive, especially during consolidation.
$AIA funding: +0.00500 (every 4 hours)
If you short, funding is relatively favorable and less frequent.
Step 4: Use funding smartly
High negative funding â avoid late shorts
High positive funding â avoid late longs
Best trades come when price + structure + funding align
Key takeaway:
Funding can drain your account even when price does nothing. Always check it before entering a trade.
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