One of the biggest mistakes I see traders make is focusing only on price action while completely ignoring the funding rate.
Let’s take ESPORTS as an example.
The funding rate is currently positive, which means long positions are paying short positions. At the same time, the price has been trading in a relatively tight range for several days without any significant bullish expansion.
This raises an important question:
If the price isn’t moving higher, why are longs continuing to pay?
The answer is simple: market positioning.
Many traders see the asset trading near its lows and assume that opening a long is the obvious play. As a result, long positions become crowded, and funding remains positive. While traders wait for the expected bounce, funding fees slowly reduce their profits or increase their losses.
This is why I always check more than just support and resistance before entering a trade.
Things worth monitoring:
✔ Funding rate
✔ Open interest
✔ Long/short positioning
✔ Recent price behavior
✔ Market sentiment
Remember, a position can lose value even when the price barely moves. Funding fees can quietly eat away at your capital if you’re on the wrong side of an overcrowded trade.
Always check the funding rate before entering a long or short position.
Not financial advice. Do your own research and manage your risk accordingly.
Let’s take ESPORTS as an example.
The funding rate is currently positive, which means long positions are paying short positions. At the same time, the price has been trading in a relatively tight range for several days without any significant bullish expansion.
This raises an important question:
If the price isn’t moving higher, why are longs continuing to pay?
The answer is simple: market positioning.
Many traders see the asset trading near its lows and assume that opening a long is the obvious play. As a result, long positions become crowded, and funding remains positive. While traders wait for the expected bounce, funding fees slowly reduce their profits or increase their losses.
This is why I always check more than just support and resistance before entering a trade.
Things worth monitoring:
✔ Funding rate
✔ Open interest
✔ Long/short positioning
✔ Recent price behavior
✔ Market sentiment
Remember, a position can lose value even when the price barely moves. Funding fees can quietly eat away at your capital if you’re on the wrong side of an overcrowded trade.
Always check the funding rate before entering a long or short position.
Not financial advice. Do your own research and manage your risk accordingly.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.