Quote from: logfiles on September 04, 2023, 10:47:23 PM

It's because so many people anticipate shitcoins to dump once they have pumped. So the funding rate ends up being negative and abnormally huge Grin

Exactly. Altcoins are also very volatile and some traders are using the funding rate to make some analyses. If altcoin pump very well, I noticed many if them later get dumped. But they are generally a risky trading asset. When I am trading them, it is like I am gambling because there are many that do not follow bitcoin price.

Quote from: logfiles on September 04, 2023, 10:47:23 PM

Funding fee is deducted only every 8 hours or 1 hour (I remember an exchange that would charge hourly, but it was a few years back).

Which exchange is that? I am using more than 5 exchanges and all of them have 8 hour range funding rate.

Quote from: adaseb on Today at 04:31:22 AM

You can’t make any money this way. Believe me I tried. What will happen is the funding rate will be near identical on all the exchanges.

I have seen a funding rate of 2% before. I was deducted $222 dollars that day. Although, I noticed that I made a profit of almost the same amount too which makes me not to gain or lose.

Quote from: cryptocointrade.com on Today at 06:26:54 AM

Here, traders who are going to take a short position anyway can take advantage of getting paid by taking a short position.

That depends on the funding rate. If it is negative, funding fee would be deducted from those that short as in the example in the OP.