📖 Crypto glossary: Funding Rate
If you trade perpetual futures, this one quietly touches your PnL every few hours 👇
🔹 What it is
A small payment swapped between long and short traders. It keeps the perp price close to the spot price.
🔹 How it works
✅ Positive rate: longs pay shorts (perp trading above spot, market leaning bullish)
✅ Negative rate: shorts pay longs (perp below spot, market leaning bearish)
⏱️ On Binance it's usually settled every 8 hours, and you only pay or receive it if you hold a position at that moment
🔹 Why it matters
💡 Holding a big position for days can add up to real costs
💡 Very high positive funding often means crowded longs, a sign the market may be overheated
Do you check funding before opening a perp trade? 👇
#CryptoEducation💡🚀 #futures #Binance #crypto
If you trade perpetual futures, this one quietly touches your PnL every few hours 👇
🔹 What it is
A small payment swapped between long and short traders. It keeps the perp price close to the spot price.
🔹 How it works
✅ Positive rate: longs pay shorts (perp trading above spot, market leaning bullish)
✅ Negative rate: shorts pay longs (perp below spot, market leaning bearish)
⏱️ On Binance it's usually settled every 8 hours, and you only pay or receive it if you hold a position at that moment
🔹 Why it matters
💡 Holding a big position for days can add up to real costs
💡 Very high positive funding often means crowded longs, a sign the market may be overheated
Do you check funding before opening a perp trade? 👇
#CryptoEducation💡🚀 #futures #Binance #crypto