Funding rate
In short
The funding rate is a periodic payment between long and short positions in perpetual futures. It keeps the futures price anchored to spot.
A positive rate means longs pay shorts (the market is positioned bullish) — and vice versa. For long-held positions, funding compounds into a real cost factor.
How often is funding paid?
Depending on the exchange, usually every 1, 4 or 8 hours — automatically between open positions.
Related terms
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