🟢What is funding in crypto trading?
In cryptocurrencies, funding refers to the funding rate that is redistributed among traders holding positions in perpetual futures.
Funding is a periodic payment/write-off for traders with open positions in perpetual futures, which allows them to compensate for the long-term difference between the price of the underlying asset and the derivative contract.
The need for funding arose from the idea of perpetual futures, which have no maturity and can be held indefinitely. Therefore, to compensate for the difference in the price of the asset and the contract, a financing rate mechanism was launched.
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In cryptocurrencies, funding refers to the funding rate that is redistributed among traders holding positions in perpetual futures.
Funding is a periodic payment/write-off for traders with open positions in perpetual futures, which allows them to compensate for the long-term difference between the price of the underlying asset and the derivative contract.
The need for funding arose from the idea of perpetual futures, which have no maturity and can be held indefinitely. Therefore, to compensate for the difference in the price of the asset and the contract, a financing rate mechanism was launched.
📱Join 🔣 Share @Business_Idea4 ✅