BullWhat is funding?
Perpetual futures have no expiry date. To keep their price close to the spot price, longs and shorts pay each other a small fee at fixed times, usually every 8 hours. The exchange does not keep this fee, it moves between traders.
- Positive rate: longs pay shorts.
- Negative rate: shorts pay longs.
Funding is charged on the full position size, not on your margin, and only if you hold the position at the funding time.
Formula
Example
You hold a 10,000 USDT long for 3 days with a funding rate of 0.01% every 8 hours. Each payment is 10,000 x 0.0001 = 1 USDT and there are 9 payments, so you pay 9 USDT. A short of the same size would receive 9 USDT.
Why it matters
In strong trends funding can rise far above 0.01%. At 0.1% per 8 hours, the same 10,000 USDT long would pay 90 USDT over 3 days. If you plan to hold a leveraged position for days, check the current rate on your exchange first.
Frequently asked questions
Is the funding rate the same every time?
No. It changes with market conditions. This calculator assumes the rate stays the same, so treat the result as an estimate.
Do I pay funding if I close before the funding time?
No. Only positions open at the exact funding time pay or receive it.
Is funding charged on margin or on position size?
On the full position size (notional value).
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
What Are Funding Rates and Why Do They Change?
A clear explanation of funding rates on perpetual futures: who pays whom, why rates go up and down, and how they affect traders who hold positions.