Funding is a periodic payment mechanism between long and short holders of a perpetual futures contract. When the rate is positive, longs generally pay shorts; when negative, shorts generally pay longs. Check the exact contract's current rate, next funding time, and interval before estimating cost.

Futures funding payment direction and timing

1. Funding is not a fixed trading fee

Perpetual contracts have no scheduled expiry. Funding helps connect their price to a reference market by transferring payments between opposing positions. Binance's funding rate and calculation can change; do not treat a past rate as a forecast.

2. Direction depends on the sign

A positive rate means long positions generally pay and short positions receive at settlement. A negative rate reverses the direction. The payment depends on position size and the applicable calculation. Receiving funding does not mean the overall position is profitable.

3. Check the settlement interval

Some explanations use an eight-hour example, but the actual interval can vary by contract or exchange adjustment. Use the contract's current funding panel and the next settlement countdown. Opening or closing near a settlement boundary can change whether a position is included.

4. Include price and liquidation risk

Funding is one component of a leveraged position's economics. Trading fees, spread, price movement, margin ratio, and liquidation risk can outweigh a funding receipt. Never open a position solely because a displayed rate appears attractive.

5. Frequently asked questions

Q1. Who pays when funding is positive?

A1. Longs generally pay shorts at the applicable settlement.

Q2. Who pays when funding is negative?

A2. Shorts generally pay longs.

Q3. Is funding always every eight hours?

A3. No. Check the current interval for the exact contract.

Q4. Does receiving funding guarantee a profit?

A4. No. Price movement, fees, and liquidation risk still apply.

Q5. Is the displayed rate permanent?

A5. No. It can change before settlement according to contract rules.

6. Official sources

7. Check terms before opening an account

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