How do Bybit funding rates affect the profitability of trading digital currencies?

1 answers

• Dec 28, 2021 · 3 years ago
  Bybit funding rates play a crucial role in determining the profitability of trading digital currencies. These rates are influenced by various factors, such as market demand, liquidity, and overall market sentiment. When the funding rate is high, it indicates a higher demand for long positions, and traders holding short positions will have to pay a fee to those holding long positions. On the other hand, when the funding rate is negative, short traders receive a fee from long traders. Traders should consider the funding rates when planning their trades and managing their risk. Additionally, Bybit's platform provides real-time funding rate data, allowing traders to stay updated and make informed decisions based on the current market conditions.
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