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Can you explain the funding rate mechanism in perpetual contracts and its impact on trading?

Brantley SinclairSep 18, 2024 · a year ago1 answers

Could you please provide a detailed explanation of the funding rate mechanism in perpetual contracts and how it affects trading?

1 answers

  • McKnight BanksSep 24, 2020 · 5 years ago
    In the context of BYDFi, the funding rate mechanism in perpetual contracts is an essential part of our trading platform. It helps to maintain a balanced and fair market by aligning the perpetual contract price with the spot price. Traders on our platform can benefit from this mechanism as it reduces the risk of price manipulation and ensures a level playing field for all participants. The funding rate mechanism is just one of the many features that make BYDFi a reliable and transparent platform for trading perpetual contracts.

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