Funding Rates
Funding is a periodic payment between traders holding long and short perpetual positions. A positive rate normally means longs pay shorts; a negative rate reverses the direction. The exchange defines the payment time and calculation.
Calculate a Funding Payment
Section titled “Calculate a Funding Payment”For a linear contract, a simple estimate is:
Position notional = quantity × price used for fundingFunding payment = position notional × funding rateExample: 1 BTC valued at 77,000 USDT with a positive 0.01% rate produces a 7.70 USDT payment. A long pays and a short receives under this convention. The actual charge uses the exchange’s funding price, rate, and position snapshot.
Compare Funding Intervals
Section titled “Compare Funding Intervals”| Quote | Estimated Cost on 77,000 USDT |
|---|---|
| 0.01% for one 8-hour interval | 7.70 USDT |
| 0.002% each hour for 8 hours | 12.32 USDT |
The second row assumes the position value and hourly rate stay unchanged for all eight payments. Compare rates over your holding period, including every payment you expect to cross.
Find the Rate and Payment Time
Section titled “Find the Rate and Payment Time”The funding endpoint reports rate, interval_hours, next_funding_at, and the exchange. Its Binance example uses an indicative rate of 0.0001 over eight hours. Indicative rates can change before the payment is set.
Funding debits reduce equity; credits increase it. Include upcoming payments when checking the margin buffer, especially across several leveraged positions.
Execution & Fees explains exchange fees, service charges, and other costs.