A question: Who pays the funding rate to whom?
Binance's funding rate mainly consists of the premium index and interest rate. The further the contract price is above or below the price index, the further the rate usually moves from its baseline.
Funding payments are simply transferred between longs and shorts in perpetual contracts. The exchange doesn't collect this money, and it's separate from trading fees.
If you're planning to hold a position for several days, factor funding payments into your holding costs. When rates are high, they can add up.
For market context: $BTC current price 80538.01, 24h +3.3%.
Be aware of the risks and make your own judgment.
Binance's funding rate mainly consists of the premium index and interest rate. The further the contract price is above or below the price index, the further the rate usually moves from its baseline.
Funding payments are simply transferred between longs and shorts in perpetual contracts. The exchange doesn't collect this money, and it's separate from trading fees.
If you're planning to hold a position for several days, factor funding payments into your holding costs. When rates are high, they can add up.
For market context: $BTC current price 80538.01, 24h +3.3%.
Be aware of the risks and make your own judgment.
