latina jewelry wholesale What does the contract funding rate of the contract mean?

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  1. wholesale wedding jewelry sets for bridesmaids Traditional futures contracts have the date of delivery, so the closer to the delivery date, the futures price on the market will naturally approach the spot price, and finally remain unchanged. However Where, capital interest rates can be used to anchor the spot price. When the price of perpetual contracts and the spot price deviate from a reasonable price difference, the cost of funds will force the deviation price to return to a reasonable level. If the capital rate of the contract is negative, it means that empty users will pay to multiple users. When the capital ratio is 0, the bulls and shorts do not need to pay the capital fee.
    . The capital rate of the contract is negative
    The funding rate refers to in the perpetual contract market. In order to make the sustainable contract market anchor the spot price (also known as the index price) When the market price of the perpetual contract is greater than the index price, the funding rate is positive, and multiple parties need to pay the funds (position*funding rate) to the empty side; otherwise, the empty side needs to pay funds to multiple parties. The history of funding rates is not long (since October 2018), and only 6 capital rates are abnormal levels, but these 6 times have accurately provided short -term buying/selling opportunities.
    . When the funding rate is high, the number of positive numbers
    will have two major impacts on transactions: First, people who are willing to buy perpetual contracts are declining High -funded expenses; second, people who are willing to be short -sustainable contracts are rising, because holding perpetual contracts can gain high funds every day. Even if the entire market continues to rise, high interest can make up for a part of the losses. For miners, when the funding rate is relatively high, it can be short in the market, which can not only be packed, but also earn funds.
    Inly, the existence of capital ratio ensures that the futures price of perpetual contracts consistent with the current price, and avoiding reasonable differences. The permanent contract of the Alpex Exchange has been launched and continued to be optimized. At present, the response is enthusiastic. If you want to participate in digital assets, you must not miss it!

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