Funding fee adjustment in futures

I was doing future trading on binance and for this email in between


[Binance] Futures Funding Fee Adjustment Notification
Dear Binancian,

Due to risk concerns, Binance Futures has adjusted the funding fee cap for BNXUSDT effective from 2022-12-04 12:00 UTC. The new funding fee cap is now 2.5%. The Frequency of Funding fee settlement is now every 2 hours. It is strongly advised to adjust the position and leverage prior to the funding fee settlement in order to avoid any potential liquidation

And then my position was liquidated even when price did not reach there. Can anyone explain this?

It is because the funding fees exceeded your position margin. BNX funding fees suddenly rose recently which liquidated lots of positions.

And as you are from India, do you plan to pay taxes on profits you are/going to earn from binance trading?

I get that anyone trading/investing on Indian exchanges have to pay 30% tax. But what about foreign exchanges like kraken or other exchanges?

Binance may even adjust the funding time interval (irrespective of the interval mentioned), based on the live market situation when there is a significant price gap between the last traded price and mark price.
Love me or hate me, I will tell you 1 reality : It is commonly known that 90+% of crypto traders lose money and you are using leveraged trades !!! You are going to burn your fingers.
If a road ahead has some deadly bumps, then someone mentioning so, is not being negative, it is the deadly bumps that are the negative aspect. Merely alerting someone about it, is not negative, it is infact a positive thing to alert someone about the deadly bumps ahead in the road.
Nonetheless, it's fine if (as usual), you feel I am saying something negative. You may please go ahead and keep trading crypto (futures), with leverage. It is your money and your trades. For me, I cannot bear to see anyone losing their money, (if that money is hard earned).

krishnaverma said:

I was doing future trading on binance and for this email in between


[Binance] Futures Funding Fee Adjustment Notification
Dear Binancian,

Due to risk concerns, Binance Futures has adjusted the funding fee cap for BNXUSDT effective from 2022-12-04 12:00 UTC. The new funding fee cap is now 2.5%. The Frequency of Funding fee settlement is now every 2 hours. It is strongly advised to adjust the position and leverage prior to the funding fee settlement in order to avoid any potential liquidation

And then my position was liquidated even when price did not reach there. Can anyone explain this?

Click to expand...

This is one of the ways I lost my money. You are being liquidated and it's what usually happens when you play with futures. Your luck is better on a slot machine, especially in this bearish market.