The latest data from COINOTAG News reveals that on April 16, the **WCT funding rate** on the **Binance** platform plummeted to its lowest threshold of **-2%**. This fluctuation in funding rate is a critical indicator for traders. In scenarios where the funding rate is positive, traders holding long positions are obligated to compensate short position holders by paying the funding fee. Conversely, when the funding rate dips into negative territory, as observed recently, it is the short positions that bear the cost and must remit funding fees to those in long positions. Understanding these mechanics is essential for optimally navigating the crypto derivatives market, as they can significantly impact trading strategies and overall market sentiment.
Source: https://en.coinotag.com/breakingnews/binance-wct-funding-rate-plummets-to-2-what-this-means-for-traders/