Most traders think price moves randomly around funding time.
It doesn’t. It moves because of funding.
The math nobody wants to talk about At current funding levels:
10x leverage → ~4.3% capital lost per funding cycle20x leverage → ~8.6% capital gone, even if price goes nowhere
You’re not “holding a position”. You’re paying a continuous penalty just to stay in the trade.
Sideways market? You bleed. Small pullback? You panic. One spike against you? You’re forced out.
This is how traders lose without ever being wrong on direction.
Why price always misbehaves near funding settlement
Ever noticed price suddenly:
Wicks against the trendSpikes aggressivelyOr dumps right before funding hits?
That’s not bad luck. That’s structure doing its job.
When funding is extreme:
One side is overcrowdedOpen interest is leverage-heavyThe market becomes fragile
So price moves just enough to:
Trigger liquidationsForce early exitsReset positioningNormalize funding
The market isn’t hunting stops. It’s restoring balance.
The real divide in this market
Retail asks: “Where is price going?”
Professionals ask: “Who is paying to stay here?”
High funding =
Crowded tradeEmotional positioningWeak hands controlling size
And weak hands always get shaken out first.
Funding doesn’t predict direction. It predicts who is vulnerable.
If you’re trading leverage and ignoring funding:
Your R:R is distortedYour timing is lateYour edge is incomplete
Price action tells where. Funding tells when pressure breaks.
That’s the difference between trading the chart…and trading the market.
#fundingrate #Marketstructure #cryptotrading $SOL $ETH