Order Flow Getting Started Tutorial
Large-amount entrusted orders (main orders)
Liquidation Heatmap
Liquidation Map
Basic introduction to order flow
What is order flow?
Order Flow Getting Started Tutorial
Order flow
What is the long-short position accounts ratio?
Manual of contract data for newer
Risk management in contract trading
Commonly used indicators for contract data
Costs in cryptocurrency trading
What positive or negative funding rates means?
Arbitrage opportunities in the cryptocurrency market
What are terms mark price、last price and estimated liquidation price?
What determined funding rate?
Basis and premium
Liquidation and delivery
What are USDT contract and USD contract?
What difference between open interest and trading volume?
Differences between cryptocurrency perpetual contract trading and leverage trading
How to keep balance for price in perpetual contracts and spot?
What categories of cryptocurrency derivatives?
What are Golden Cross and Death Cross, and how are they used in trading?
What is liquidity
What is VWAP indicator and how to use it in cryptocurrency trading?
What is the RSI indicator, how to see overbought and oversold?
How to Read Order Book Data?
The Analysis and Trading Applications of Long-Short Position Ratio and Open Interest
The Significance and Application of Cryptocurrency Liquidation Data
How is funding rate calculated for cryptocurrency perpetual contracts?
How to interpret the open interest data of cryptocurrency contracts?
What is the purpose of the cryptocurrency funding rate?
What is Top trader account long/short ratio
What is exchange top trader positions long/short ratio
What is Bitcoin open interest?
What is perpetual contract funding rate?
What is BTC liquidation or what is cryptocurrency liquidation?

What is perpetual contract funding rate?

The perpetual contract funding rate is a trading cost that is charged or paid by traders during their position holding process in perpetual futures trading. It is calculated by the funding rate mechanism of the digital currency exchange and is used to balance the interests of long and short positions in futures and prevent prices from deviating excessively from the underlying index price. It is calculated periodically during the traders' position holding process and settled according to the contract rules.

When the bullish force is stronger in the contract market, the exchange will charge funding fees from the bearish side to the bullish side, and vice versa when the bearish force is stronger. The funding rate is calculated based on the difference between the contract price and the underlying index price, and when the difference is large, the funding rate will be correspondingly high.

When using perpetual contracts trading, traders need to pay attention to the changes in the perpetual contract funding rate. When the funding rate is positive, long positions need to pay funding fees, while short positions will receive funding fees, and vice versa when the funding rate is negative. Traders can view the current perpetual contract funding rate on the exchange's trading interface and adjust their position holding strategy based on the funding rate's changes.

In summary, the perpetual contract funding rate is an important cost in perpetual contracts trading. Traders need to pay attention to the changes in the funding rate and adjust their position holding strategy reasonably to achieve a better trading experience and profit performance.

Information content does not constitute investment advice, investors should make independent decisions and bear their own risks