Post
Topic
Board Trading Discussion
Topic OP
Futures trading: should I aim to avoid funding fees wherever possible?
by
jdn_ldn
on 06/06/2020, 19:51:08 UTC
With one of my automated strategies, a position gets closed at the exact same time as one of the three daily funding fees occur (+00:00UTC Binance Futures).

The Binance docs on funding say the following "In general, traders prefer platforms that provide the lowest funding rate as it can have a significant impact on profits and losses."

So does this imply that funding would ideally be avoided wherever possible?

I know it might seem like a silly question, but I my transaction history shows that its pretty 50/50 as to weather funding is charged positive or negative. I'm wondering if long-term it might just work out fairly balanced anyway?

Otherwise, of course I would aim to implement something that closes the position a few seconds before 00:00UTC to narrowly avoid the funding fee.

I should say I'm fairly new to futures/derivatives and am getting to grips with it using a tiny balance a 1x leverage (basically I'm aware of the risks before anyone points this out).