πΈ Funding β What Is It and Why You Can Make Money on It
If you trade futures, funding affects you directly. But most traders either don't know what it is or simply ignore it. And that's a mistake.
Let's break it down simply π
β What is funding?
Funding is a regular payment between traders on the futures market. It happens every 8/4/1 hours, and its purpose is simple β to keep the futures price close to the spot price. It's a kind of equalization mechanism.
β Who pays whom?
It all depends on the sign of the funding rate:
β Positive rate β futures are more expensive than spot. Longs pay shorts.
β Negative rate β futures are cheaper than spot. Shorts pay longs.
Market going up? Longs pay.
Market panicking and falling? Shorts pay.
β How to make money from this?
Without getting into too much detail:
See a high positive rate β open a short position and receive payments every 8/4/1 hours.
See a negative rate β open a long position and receive payments every 8 hours.
And if you hedge your position, the market direction doesn't matter at all. You just collect funding while the position is open.
There are some nuances and pitfalls here, but we cover all of that in our training programs.
π Real-life example
The funding rate for coin AS is 0.5% every 8 hours.
That's 1.5% per day. That's 45% per month β just from funding.
Yes, such rates don't appear all the time. But our scanner tracks them in real time β and notifies you when a profitable opportunity arises.
βοΈ Important: funding is not passive income on autopilot. You need to monitor the rate, account for fees, and manage your position properly.
The only thing that could be called passive funding is long-term funding (find a trade, enter a position, set up TG notifications through our service for funding rate changes, and just wait for the funding to roll in). And that's exactly what we teach in our training.
πΈ Funding exists on every exchange, every single day. The only question is β are you paying it or receiving it?