Post
Topic
Board Trading Discussion
Re: Future and perpetual (derivative) trading
by
Bitcoin_Arena
on 14/12/2022, 23:05:17 UTC
>>>snip<<<
I know how funding rate works, but what I didn't understand was what @SquirrelJulietGarden said that the rate would reduce with time if the position was kept for long or did he give some wrong information?

Here:

With Perptual trading, when you have a position, the longer you let that position opens, the more interests you will have to pay for that exchange. Usually exchanges will have different shifts of funding rates within every 24 hours. It can be 3 or 4 shifts every day.

So even if your position at the end when you close it at profitable exit price, the longer you let that position opens, the less interest you will get at the end because the more in interest you will have to pay for exchange.



What you think the risk more dangerous, Future or Perpetual?
All are risky

Is ETF like BNB3X is included in derivative?
Yes, it's a derivative instrument because it's price "derived" from the spot price of the underlying asset