zeboobalouch

$SOL $ETH
Experts — should I hold or close my positions?
Looking for guidance from those who know the game.

I have confused n this trade please expert guide me😭😭😭😭

$ETH can someone help me hold the trade or close it please help

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🔍 What Is the Funding Fee?

In perpetual futures, there's no expiration date, so exchanges use a mechanism called the funding rate to keep the contract price close to the spot price.

Funding fees are payments between traders—not a fee to Binance.

If the funding rate is positive, longs pay shorts.

If it's negative, shorts pay longs.

This rate is calculated every 8 hours (00:00, 08:00, 16:00 UTC on Binance).

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😰 Why Can the Funding Fee Be Higher Than Your Profit?

Here’s how:

1. Small Profit, Large Position:

Say you’re scalping and you make $5 profit on a $10,000 position.

If the funding rate is 0.03%, you’d pay:
$10,000 × 0.0003 = $3 per funding interval.

If you hold through three intervals, you’d lose $9 just in funding fees.

Net result: $5 profit - $9 funding = -$4 loss.

2. High Leverage Makes It Worse:

Funding is based on the position size, not your margin or profit.

20x leverage = small price change, big position size = higher funding impact.

3. Low Volatility or Sideways Movement:

If you’re in a flat market but paying funding every 8 hours, the funding can erode your small gains.

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🧠 Is This a Binance Issue?

Nope, not a Binance-specific issue. It’s just how perpetual contracts work on all platforms (Bybit, OKX, etc.).

However, Binance’s high open interest in some pairs (like $VIC) can cause more extreme funding rates at times.

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✅ What You Can Do:

1. Check the Funding Rate Before You Enter a Trade

Use Binance’s Funding Rate History or live ticker.

Avoid entering long positions when the rate is high and positive.

2. Avoid Holding Positions Across Funding Times

Close before the 8-hour mark if possible.

Example: enter at 06:00 and close by 07:50 UTC.

3. Trade Low Funding/Negative Funding Coins

If you’re short and the rate is positive—you earn funding.

4. Factor Funding into Your Risk Management

Funding fee = part of your trading cost,#TrumpTariffs #DayTradingStrategy #MuskAmericaParty #SpotVSFuturesStrategy #Write2Earn