Paying fees for short-term gains is fun at first, but over time it becomes a gentle trap!
Some coins have a daily funding rate of over 6%, and once the longs and shorts are slightly heavily leveraged, a liquidation can happen! Hedging with funding fees seems very good on the surface, as the contract prices of altcoins are basically controlled to match the spot prices!
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Paying fees for short-term gains is fun at first, but over time it becomes a gentle trap!
Some coins have a daily funding rate of over 6%, and once the longs and shorts are slightly heavily leveraged, a liquidation can happen!
Hedging with funding fees seems very good on the surface, as the contract prices of altcoins are basically controlled to match the spot prices!