In trading perpetual futures, profit or loss is not limited to price movement alone; there is an important element often overlooked by many traders, which is funding fees. Understanding this concept is essential to avoid unexpected losses and make correct trading decisions.
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What are funding fees?
Funding fees are amounts paid or received between traders who hold open positions in perpetual futures.
I was surprised that many traders do not know what financing fees mean.. Look at the picture Here, for example, the fee is approximately 0.8 Multiply it by the leverage size, for example, 5 5 × 0.8 = 4 This means in this example you earn 4% of the amount you entered for every hour, focus every hour if you are in a buy position.. For example, if you entered with 100 dollars and leverage of 5 Every hour you receive a profit of 4 dollars, and if you are in a sell position in the example trade, you will pay 4 dollars.
Of course, financing fees are not fixed; they change during the trade. I would also like to clarify that if the financing fees are negative, you will pay if you entered a buy position.
Soon I will publish an article from artificial intelligence to explain the topic further, best regards. $SENT #sent