What Is Funding Rate?
A periodic payment exchanged between long and short traders in perpetual futures, typically every eight hours. When funding is positive, longs pay shorts, signaling bullish positioning. When negative, shorts pay longs. Funding keeps the perpetual price anchored to the spot price.
Related Terms
- Perpetual Futures A futures contract with no expiry date.
- Open Interest The total value of all outstanding futures contracts that have not been closed.
- Long A position that profits when the price rises.
Where You Will Meet This Term
You will run into funding rate constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.