🔥 I am deciphering the essence of the funding bid and its pitfalls 🔥

Funding rate... This thing drives beginners crazy and makes experienced traders constantly count money. I lost on it for a long time until I figured out what was what. In short, it's such a tricky system where longs and shorts pay each other on perpetual futures.

It's simple: a positive rate means longs pay money to shorts, a negative rate means shorts shell out.

It annoys me how trading platforms present this as something fair. In reality, it is a mechanism to drain cash from greedy traders! Every 8 hours, someone loses money, even if the price doesn't move.

Recently, I found myself in a situation with XLM - I opened a long, and there the rate is 0.1% every 8 hours. In a day, that's almost 0.3%! With 20x leverage, that's already 6% of the deposit disappearing in a day just like that. Pure robbery!

And do you know what's the funniest thing? When everyone runs in one direction (, for example, everyone is confident in the rise ), the bet soars to the heavens. And it's at that moment that the "smart money" does the opposite - they short and gather funding.

Where to see this bet? On all trading platforms! But don't take their word for it, they often hide it in the interface so that you don't accidentally notice how much you will pay.

I now always use this thing in my strategies. When everyone is bullish and paying insane funding - I go against the crowd. And you know what? It works much better than any technical indicators!

How do you use funding? Or are you still losing money on it?