Contracts aren’t that hard—if you keep your discipline, maintain a steady mindset, and stay on top of technical analysis, even ordinary people can make a name for themselves. The key is to observe more, think more, do more reviews, and really figure out the logic behind the veterans’ moves. Only then can you truly solidify your fundamentals.

Today let's talk about a practical indicator: **How to interpret funding rates?** This metric directly reflects market sentiment. Those who know how to use it can sense shifts ahead of time.

**1. The Ins and Outs of Funding Rates**

**1. How to judge funding rate thresholds?**

• **Above +0.10%** → The market has gone mad, a typical sign of a bull market's end. What should you do now? Cut your positions without hesitation.
• **+0.07% ~ 0.09%** → Running a high fever, still holding up but risk is piling up. Suggest gradually pulling out, keeping only a small position to observe.
• **+0.03% ~ 0.06%** → Hot but not out of control, you can hold your longs but don’t chase and open new positions at highs.
• **0% ~ +0.02%** → The most comfortable phase, the market is calm, and your mindset is most stable.
• **-0.01% ~ -0.04%** → Mild negative funding rate, this is a golden area to add positions! You can collect funding fees and wait for a rebound—