What is the funding rate in FTX perpetual futures?

3 answers

• attuApr 20, 2021 · 5 years ago
  The funding rate in FTX perpetual futures is a mechanism that helps keep the price of the perpetual contract in line with the spot market. It is a fee that is exchanged between long and short positions every 8 hours. If the funding rate is positive, long positions pay short positions, and if it is negative, short positions pay long positions. The funding rate is influenced by the difference between the perpetual contract price and the spot market price, as well as the interest rate and demand for the contract. It is designed to incentivize traders to keep the price of the perpetual contract close to the spot market price.
  629

  315
• MilicodingApr 29, 2021 · 5 years ago
  In FTX perpetual futures, the funding rate is a way to prevent the price of the perpetual contract from deviating too much from the spot market price. It is calculated based on the difference between the contract price and the spot market price, as well as the interest rate and demand for the contract. The funding rate is exchanged between long and short positions every 8 hours. If the funding rate is positive, long positions pay short positions, and if it is negative, short positions pay long positions. This mechanism helps maintain market stability and encourages traders to keep the perpetual contract price in line with the spot market.
  646

  216
• enriquePErlado1Mar 26, 2023 · 3 years ago
  The funding rate in FTX perpetual futures is a unique feature offered by BYDFi. It is a fee that is exchanged between long and short positions every 8 hours. If the funding rate is positive, long positions pay short positions, and if it is negative, short positions pay long positions. The funding rate is influenced by various factors, including the difference between the perpetual contract price and the spot market price, as well as the interest rate and demand for the contract. It is designed to incentivize traders to keep the price of the perpetual contract close to the spot market price and ensure fair trading conditions for all participants.
  653

  164