How much have funding fees cost you?
When trading perpetual contracts, people often focus only on profits and losses and overlook funding fees—the hidden cost.
Perpetual contracts have no expiry date. Every 8 hours, longs and shorts pay each other a fee: when the rate is positive, longs pay shorts; when it's negative, shorts pay longs. The exchange isn't involved.
Let's do the math: a 1,000 USDT long position at a 0.01% funding rate costs 0.1 USDT per payment. Three payments a day add up to 0.3 USDT; that's 9 USDT a month and 109.5 USDT a year. It may not seem like much, but when rates fluctuate sharply, they can reach 0.1%—that would be 90 USDT a month. Leverage multiplies the cost: with 10x leverage on 100 USDT of margin, you'd pay 0.3 USDT a day, a significant annualized cost.
You can check funding rates on the contract page and view their history.
At its core, funding is a holding cost. It may not be steep, but it keeps adding up the longer you hold. Contracts aren't suitable for holding indefinitely like spot assets—leave a contract position open, and it keeps costing you. Have you ever calculated how much you've paid in a year?
When trading perpetual contracts, people often focus only on profits and losses and overlook funding fees—the hidden cost.
Perpetual contracts have no expiry date. Every 8 hours, longs and shorts pay each other a fee: when the rate is positive, longs pay shorts; when it's negative, shorts pay longs. The exchange isn't involved.
Let's do the math: a 1,000 USDT long position at a 0.01% funding rate costs 0.1 USDT per payment. Three payments a day add up to 0.3 USDT; that's 9 USDT a month and 109.5 USDT a year. It may not seem like much, but when rates fluctuate sharply, they can reach 0.1%—that would be 90 USDT a month. Leverage multiplies the cost: with 10x leverage on 100 USDT of margin, you'd pay 0.3 USDT a day, a significant annualized cost.
You can check funding rates on the contract page and view their history.
At its core, funding is a holding cost. It may not be steep, but it keeps adding up the longer you hold. Contracts aren't suitable for holding indefinitely like spot assets—leave a contract position open, and it keeps costing you. Have you ever calculated how much you've paid in a year?
