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How does funding rate affect position size?

Binance

Cryptocoins Exchanges / Binance 143 Views

I'm using BTC/USD remoted perpetual coin futures

I contacted the help relating to this easy query they usually informed me that the funding price is deducted from my position measurement, effectively which means that with lengthy enough time funding can deduct my position measurement into nothingness and I will make very little if any income - instance: I hold my position open for a few years and funding is all the time constructive. Is that this actually the case?

A google search tells me that the funding fees are deducted from the margin of my place, which means that the income and losses keep the identical, relative to the position measurement regardless of how a lot the funding charges are deducted, because the fees are deducted from margin, which doesn't affect the place measurement and there's all the time the option to add margin, even to an remoted place, in case I run out of margin due to funding, right?

Can somebody assist me and inform me which one is the right reply?

Thanks!

submitted by /u/rempss77
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