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?

How is funding rate calculated for cryptocurrency perpetual contracts?

The funding rate for cryptocurrency perpetual contracts is calculated based on a funding rate formula. The funding rate is used in perpetual contract markets to ensure that the contract price closely tracks the underlying asset price.

Here is the general formula for calculating the funding rate of cryptocurrency perpetual contracts:

Funding Rate = Latest Funding Rate Coefficient * Position Size * Contract Value / Funding Rate Time Interval


  • The Latest Funding Rate Coefficient is a parameter determined by the exchange based on market supply and demand dynamics and contract design.
  • Position Size refers to the total open interest of the contract, including both long and short positions.
  • Contract Value is the value of each contract unit.
  • Funding Rate Time Interval represents the settlement period for the funding rate, typically occurring at regular intervals such as every 8 hours.

The calculation steps are as follows:

  1. Obtain the latest funding rate coefficient.
  2. Retrieve the total open interest of both long and short positions.
  3. Obtain the value of each contract unit.
  4. Determine the funding rate time interval.
  5. Plug in the values obtained above into the funding rate formula to calculate the final funding rate.

It is important to note that the funding rate can be positive or negative. A positive funding rate indicates that long positions need to pay funding fees to short positions, while a negative funding rate implies that short positions need to pay funding fees to long positions. The sign of the funding rate depends on the direction of the contract.

Please note that different exchanges and contracts may have slightly different calculation methods and parameter settings. Therefore, when performing actual operations, it is advisable to refer to the relevant documentation or information provided by your specific exchange and contract to understand the accurate funding rate calculation rules.

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