What is the funding rate for perpetual BTC futures?

3 answers

• Adepoju OlufemiFeb 25, 2024 · 2 years ago
  The funding rate for perpetual BTC futures is a mechanism used to ensure the price of the futures contract stays close to the spot price of BTC. It is a fee paid between long and short positions every 8 hours. If the funding rate is positive, longs pay shorts. If it is negative, shorts pay longs. The funding rate is influenced by factors such as the difference between the futures price and the spot price, market demand, and trading volume. It helps prevent large price discrepancies between the futures market and the spot market.
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• English MasseyJan 29, 2023 · 3 years ago
  The funding rate for perpetual BTC futures is essentially a way to incentivize traders to keep the futures price in line with the spot price. It helps prevent manipulation and ensures fair pricing. The funding rate is calculated based on the difference between the futures price and the spot price, as well as market demand. If the futures price is higher than the spot price, long positions pay short positions. If the futures price is lower, short positions pay long positions. It's an important mechanism in the perpetual futures market.
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• Patrick HsuFeb 09, 2025 · 8 months ago
  When it comes to perpetual BTC futures, the funding rate is a crucial aspect to consider. It is a fee that is exchanged between long and short positions every 8 hours. The funding rate is determined by the difference between the futures price and the spot price of BTC. If the futures price is higher than the spot price, long positions pay short positions. If the futures price is lower, short positions pay long positions. This mechanism helps maintain the stability and fairness of the perpetual futures market.
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