Does the funding fee count as a fee charged by the exchange?
First, what it is: Each funding payment = the position’s notional value multiplied by the funding rate. The notional value is based on the mark price and has nothing to do with how much leverage you use.
The logic behind it: When the futures price is higher than the spot price, the funding rate is often positive, so longs have to pay. This increases the cost of holding a long position and puts downward pressure on the futures price.
For context, $BTC is quoted at 80440.77, up 3.85% over 24h.
Don’t trade futures with borrowed money. Losses can often be bigger than you expect.
It’s your money—think it through before you act.
First, what it is: Each funding payment = the position’s notional value multiplied by the funding rate. The notional value is based on the mark price and has nothing to do with how much leverage you use.
The logic behind it: When the futures price is higher than the spot price, the funding rate is often positive, so longs have to pay. This increases the cost of holding a long position and puts downward pressure on the futures price.
For context, $BTC is quoted at 80440.77, up 3.85% over 24h.
Don’t trade futures with borrowed money. Losses can often be bigger than you expect.
It’s your money—think it through before you act.
