Recently, many people have asked me about the funding rate issue. I will give you an in-depth analysis #资金费率
The funding rate is used to narrow the price difference between the contract market and the corresponding spot market.
The funding rate is positive, and users who are long are paid to users who are short.
The funding rate is negative, and short sellers are paid to long users.
(That is to say, it is possible that the counterparty pays you this fee, or you pay it to the counterparty. This is an exchange of fund fees between long and short users, and the exchange does not charge any fees)
The funding rate settlement time for each currency is different. Most of them are calculated every 8 hours, and some are settled every 2.3.4.6 hours.
Only if you hold a position in any direction at the time of collection, you will be charged or paid the corresponding funding fee. If you have no positions, you will not be charged or paid funding fees
Settlement fund calculation formula:
Settlement funds = Notional value of position x Funding rate
Position notional value = mark price x position currency quantity
There is a deviation of about 15 seconds in the actual collection time of the funding rate. For example, if user A opens a position at 08:00:05 Hong Kong time, user A may still be charged or paid the funding rate. Pay attention to the opening time (charged every 8 hours by default) (the exchange can adjust the settlement time of the funding rate at any time )$BTC $ETH
The funding rate is used to narrow the price difference between the contract market and the corresponding spot market.
The funding rate is positive, and users who are long are paid to users who are short.
The funding rate is negative, and short sellers are paid to long users.
(That is to say, it is possible that the counterparty pays you this fee, or you pay it to the counterparty. This is an exchange of fund fees between long and short users, and the exchange does not charge any fees)
The funding rate settlement time for each currency is different. Most of them are calculated every 8 hours, and some are settled every 2.3.4.6 hours.
Only if you hold a position in any direction at the time of collection, you will be charged or paid the corresponding funding fee. If you have no positions, you will not be charged or paid funding fees
Settlement fund calculation formula:
Settlement funds = Notional value of position x Funding rate
Position notional value = mark price x position currency quantity
There is a deviation of about 15 seconds in the actual collection time of the funding rate. For example, if user A opens a position at 08:00:05 Hong Kong time, user A may still be charged or paid the funding rate. Pay attention to the opening time (charged every 8 hours by default) (the exchange can adjust the settlement time of the funding rate at any time )$BTC $ETH