【Definition】Who pays whom in funding fees?
The funding fee for each period equals the position’s notional value × the funding rate. The notional value is calculated using the mark price and is unrelated to the leverage used.
When the contract price is above the spot price, the funding rate is usually positive, so longs pay. This raises the cost of holding a long position and puts pressure on the contract price to move closer to the spot price.
For reference, $BTC is quoted at 80553.84, up 1.07% over 24 hours.
Avoid chasing trades during sharp market swings; wait for the market to stabilize before deciding.
The funding fee for each period equals the position’s notional value × the funding rate. The notional value is calculated using the mark price and is unrelated to the leverage used.
When the contract price is above the spot price, the funding rate is usually positive, so longs pay. This raises the cost of holding a long position and puts pressure on the contract price to move closer to the spot price.
For reference, $BTC is quoted at 80553.84, up 1.07% over 24 hours.
Avoid chasing trades during sharp market swings; wait for the market to stabilize before deciding.
