Funding Rate
Funding rate is a rate used in futures trading. This rate represents the funding rate of a futures contract.
Funding Rate Table
What is Funding Rate?
Funding rate is a rate used in futures trading. This rate represents the funding rate of a futures contract.
The funding rate is paid by traders who are on the opposite side of the majority. For example, if there are more long positions than short positions, long traders will pay the funding rate to short traders. This mechanism helps to keep the perpetual futures price close to the index price.
The funding rate is calculated based on the difference between the spot price of the underlying asset and the futures price. The funding rate is used to ensure that the futures price remains aligned with the spot price, and to provide a mechanism for arbitrage between the two markets.
