《Still going long with positive funding rates and shorting with negative funding rates? You deserve to lose until you’re done!》

$ZEC You’ve been shaking all day, and you’re still there studying the funding rate: when it’s positive you go long, and when it’s negative you buy the bottom—so what happened? You stood guard at the top while the floor got buried, and you lost so badly even your mom wouldn’t recognize you!

Who taught you to play like this? What is a funding rate? It’s the settlement cost between long and short positions—the cost basis for the two sides—which is used to balance futures and spot prices. It’s not some damn entry signal for you!

If the funding rate spikes to extremely high positive levels, it means the market is already packed with longs—everyone is rushing in, and the emotions are boiling. If you charge in then, you’re not just buying at the very top—you also have to pay the shorts a funding-related protection fee every 8 hours. By grabbing just a few days of fees, you end up giving away half your profit. If the price pulls back even slightly, long liquidations trigger a stampede—by the time that happens, you don’t even get a chance to run.

If the funding rate falls to deeply negative values, it means the whole market is shorting. You think you can just collect a little bit of “tip” every day? If the market gets smashed down again, that little bit of return won’t even be enough to fill the gap—you’ll be locked into a deep trap.

In plain human terms, how to use it:

· Funding rate extremely high → a signal of overheated longs. Reduce your long positions, try a small-size short, and stop-losses must be strict!
· Funding rate extremely negative → overcrowded shorts. Be careful of a short squeeze. Try going long with a small position—never go heavy!
· Funding rate steady and hovering close to zero → don’t overthink it. Trade normally according to your own K-line signals.

Remember: the funding rate is just an “emotional thermometer.” It tells you how crowded the current direction is. The hotter it is, the less you should chase. The colder it is, the less you should randomly catch the bottom.

Before you place any trades, glance at the funding rate—if the number looks abnormal, hold back and wait for the emotions to cool down before entering. That’s all there is to it. This simple way of operating can help you avoid most of the big loss traps.

Still mindlessly rushing in based on a funding-rate rhyme? In the comments, type “wake up”—and I’ll give you a life-saving line:
(But I know—when the funding rate spikes next time, you’ll forget again… it’s fine. Lose a few times and you’ll finally learn.)
And smart people? They stopped using this thing to open positions a long time ago.
#星舰本周四重新挑战发射