The Importance of Knowing Funding Rates in Trading

CANVA

There are many new traders who dont know about the trading skills and dont know what things to keep in mind when trading.

This is why majority of the traders get failure when trading and they keep on booking losses and in the end they only blame this market.

There are also senior traders who only knows 20% about trading. That is why it is always advised to learn before trading.

No doubt this is a volatile market and if not done properly can give you huge losses. That is why it needs you to learn basis at least.

In this post I am going to discuss about funding rates/fees in the future market trading.

For many of you it might be the new word and it will be to good to learn about this.

In future trading, we have funding fee which is taken from long holders and given to short holders and vice versa.

It depends upon the market trend, in case market is bullish long traders are paid with funding fees and in case of bearish market short traders are being paid.

It is very important to keep in mind that when holding your trade you must know whether I am earning funding fees or giving.

Funding fees will be deducted from your whole amount of trade. There are some times when funding fee rates get higher then 0.1%.

Which means if you are holding $1000 worth trade, then you will keep on earning or losing $1 after every 8 hours.

This is how funding fee works and you must be careful about these rates before taking your trade.

THANK YOU!

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