A funding fee is a charge assessed by a exchange to encourage traders to provide liquidity to the market by placing limit orders. The fee is calculated as a percentage of the total value of the trade and is paid by the taker of the trade.
The funding fee is Binance’s way of generating revenue to cover the costs associated with maintaining the platform and providing customer support. The fee is also used to offset the risk associated with providing liquidity to the market.
The funding fee is not charged on trades that are executed immediately at the market price. For example, if you place a limit buy order at $10 and the next available sell order is at $10, your trade will be executed immediately and you will not be charged a funding fee.
The funding fee is only charged on trades that are executed when there is an order on the opposite side of the order book. For example, if you place a limit buy order at $10 and the next available sell order is at $11, your trade will not be executed immediately.
Your order will remain open until another trader places a limit sell order at $10 or higher. If your order is filled, you will be charged a funding fee. .
The funding fee is calculated as a percentage of the total value of the trade and is paid by the taker of the trade. The current taker fee schedule can be found here: https://www.binance.com/en/fee/schedule.
The funding fee is deducted from your account balance when your trade is executed. For example, if you place a limit buy order for 1 BTC at $10,000 and your order is filled, you will be charged a 0.1% taker fee, which is 1 BTC * 0.001 = 0.
01 BTC. The 0.01 BTC will be deducted from your account balance and you will receive 1 BTC in your trading account.
If you place a limit sell order for 1 BTC at $9,000 and your order is filled, you will be charged a 0.
001 = 0.01 BTC. The 1 BTC that you receive from the trade will be net of the 0.