What are the nuances of funding rates in cryptocurrency trading?
Could you elaborate on the intricacies of funding rates in the world of cryptocurrency trading? I'm particularly interested in understanding how they function in relation to leverage trading, how they're calculated, and what factors influence their fluctuations. Are there any specific strategies traders employ to take advantage of funding rates, or do they primarily serve as a mechanism for maintaining the balance between longs and shorts? I'm also curious about how funding rates may differ across various exchanges and cryptocurrency pairs. Could you provide a concise yet comprehensive overview of the nuances associated with funding rates in crypto trading?