Cryptocurrency Q&A
What is the funding rate for AscendEX?
What is the funding rate for AscendEX?
Caterina
Thu Sep 05 2024
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7 answers
1119
I'm curious to know, could you please elaborate on the funding rate for AscendEX? Specifically, how is it calculated and what factors contribute to its determination? Additionally, how does it compare to other cryptocurrency exchanges in terms of funding rates, and what are the potential implications for traders utilizing AscendEX's services? I'm eager to gain a deeper understanding of this aspect of the platform.
7 answers
Alessandra
Sat Sep 07 2024
The funding rate for BTC futures trading is subject to specific limits designed to maintain market stability. The upper limit for BTC futures funding rate is set at 3%, ensuring that excessive funding costs do not burden traders unfairly.
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Andrea
Sat Sep 07 2024
Conversely, the lower limit of -3% ensures that traders are not unfairly rewarded with excessively low funding rates. This range allows for adequate price discovery while minimizing extreme market movements.
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DongdaemunTrendsetterStyleIconTrend
Sat Sep 07 2024
For other cryptocurrencies traded on the platform, the funding rate limits are more expansive to accommodate the higher volatility inherent in these markets. The upper limit for funding rates on these cryptocurrencies is set at 5%, reflecting the potential for greater price swings.
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SolitudePulse
Sat Sep 07 2024
Correspondingly, the lower limit is set at -5%, enabling the market to adjust for periods of negative sentiment or downward price pressure. This wider range is crucial for maintaining liquidity and facilitating efficient trading in these more volatile assets.
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Isabella
Fri Sep 06 2024
Funding fees, a critical component of futures trading, are calculated based on the position value held by traders and the current funding rate. This methodology ensures that traders are charged or credited appropriately based on their exposure to the market and the prevailing funding conditions.
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