Is the funding fee a fee charged by the exchange?
This is how I understand it: when the contract price is higher than the spot price, the funding rate is often positive, so longs have to pay. This raises the cost of holding a long position and gives the contract price more reason to fall back.
Only those still holding a position at the settlement time pay or receive the funding fee. If you close your position before settlement, you neither pay nor receive it.
By the way, take a look: $BTC current price 77269.99 (24h -0.78%).
#BTC
This is how I understand it: when the contract price is higher than the spot price, the funding rate is often positive, so longs have to pay. This raises the cost of holding a long position and gives the contract price more reason to fall back.
Only those still holding a position at the settlement time pay or receive the funding fee. If you close your position before settlement, you neither pay nor receive it.
By the way, take a look: $BTC current price 77269.99 (24h -0.78%).
#BTC