How do funding rates impact leveraged positions?

[cryptohog]

Positive funding rate → longs pay shorts.

Negative funding rate → shorts pay longs.

Traders can time entries to benefit or avoid paying funding fees.

[Nahid10]

High positive funding rates often signal overcrowded longs, increasing risk for leveraged traders.

[EmTeam]

Understanding funding dynamics helps time entries better and avoid liquidation traps in futures markets.