Crypto trading · Pro
Funding rate
What does Funding rate mean?
A funding rate is the rate used to calculate a periodic transfer between opposing perpetual positions. Its sign, calculation and interval depend on the contract and venue.
Example
At a positive illustrative rate, long positions pay short positions for the applicable interval.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
The displayed estimate can change before the funding timestamp. Compare intervals before comparing quoted rates, and separate this from a prop evaluation fee.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.