Binance, Exchanges

What Is Funding Rate in Binance Futures?

The funding rate is a fee charged by a cryptocurrency exchange to its users that trade on margin. This fee is paid by the longs to the shorts and is used to incentivize traders to provide liquidity to the market.

The funding rate is also known as the financing rate. .

The funding rate is calculated every 8 hours and is based on the interest rates of the underlying assets, as well as the trading activity of the past 4 hours. The funding rate is charged every 4 hours, and is paid out at the end of each 8-hour period.

The funding rate can be positive or negative, and is usually a very small percentage of the total value of the trade. For example, if the funding rate is 0.

NOTE: WARNING: Trading in Binance Futures carries a high level of risk and can result in the loss of your entire investment. Before trading, you should carefully consider your objectives, level of experience, and risk tolerance. The Funding Rate is an important concept to understand when trading on Binance Futures as it can have a significant impact on your position’s profitability. The Funding Rate is a fee that is paid between traders with long and short positions, based on the difference between their positions’ interest rates. If the Funding Rate is positive, those with long positions pay those with short positions; if it is negative, those with short positions pay those with long positions. If you do not understand the Funding Rate or its implications for your trades, do not trade until you have sought professional advice.

01%, and you have a margin trade worth $100,000, you will pay or receive $10 every 8 hours.

The funding rate is an important part of trading on margin, and can impact your profits or losses. If the funding rate is positive, you will earn interest on your margin trade.

If the funding rate is negative, you will pay interest on your margin trade.

It’s important to remember that the funding rate is not static, and can change over time. Be sure to check the funding rate before opening a margin trade, so you know how it will impact your profits or losses.

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