When the funding rate goes to an extreme, my first reaction isn’t to rush in and take the other side of the trade—it’s to “pause” first. To put it plainly, at that point the market’s sentiment has already twisted into a mess; you think you’re harvesting, but you might actually be taking someone else’s thrown knife. Sometimes I do want to take the other side, but I’m more inclined to probe with small positions; more often, I just stop, stop and observe, and wait for it to cool down on its own. Recently, after a few incidents like cross-chain bridge thefts and oracle errors, everyone has been shouting “wait for confirmation,” and I pretty much agree—better to miss a stretch and not burn up your judgment in the middle of volatility. In any case, moving more slowly keeps your mindset steadier.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned