{"id":16293,"date":"2026-10-14T09:42:39","date_gmt":"2026-10-14T09:42:39","guid":{"rendered":"https:\/\/backcom.io\/?p=16293"},"modified":"2026-10-15T09:56:36","modified_gmt":"2026-10-15T09:56:36","slug":"what-is-funding-rate-guide","status":"publish","type":"post","link":"https:\/\/backcom.io\/en\/what-is-funding-rate-guide","title":{"rendered":"What Is Funding Rate? How To Calculate Funding Fees And Check Binance Funding Rate"},"content":{"rendered":"\n\n
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A futures position can stay open overnight while your USDT balance falls by a few dollars. No trade was closed: the change may be a funding fee<\/strong>. So what is funding rate<\/strong>, and how does that percentage become a payment? The rate sets the direction and size of the transfer between long and short positions; the fee is the amount credited or debited.<\/p>\n\n\n\n

In this article, Backcom.io explains the mechanism, walks through a 10,000 USDT position, and shows how to check the rate and settlement schedule before holding a trade.<\/p>\n\n\n\n

What Is Funding Rate And Why Do Perpetual Futures Need It?<\/h2>\n\n\n\n
\"What
What Is Funding Rate And Why Do Perpetual Futures Need It?<\/figcaption><\/figure>\n\n\n\n

Funding rate<\/strong> is the percentage used to calculate periodic payments between long and short holders of a perpetual futures contract. The payments encourage its price to stay near the spot index price, even though the two prices can diverge temporarily.<\/p>\n\n\n\n

Unlike a dated futures contract, a perpetual has no expiry date that forces convergence on a particular day. That distinction is central to this research on perpetual futures<\/a>. Understanding funding helps you separate price-driven profit or loss from cash flows that occur while your position remains open. An ordinary spot purchase has no equivalent payment between opposing long and short holders.<\/p>\n\n\n\n

What Is A Funding Fee? A Transfer Between Traders<\/h3>\n\n\n\n

A funding fee<\/strong> is the USDT paid or received at settlement. Binance and OKX say it passes between opposing positions; the exchange does not retain it as a service fee. Keep three futures costs separate:<\/p>\n\n\n\n

Charge<\/th>Recipient<\/th>When It Arises<\/th><\/tr><\/thead>
Maker\/taker trading fee<\/strong><\/td>Exchange<\/td>When an opening or closing order fills.<\/td><\/tr>
Funding fee<\/strong><\/td>Trader on the opposing side<\/td>At settlement while the position remains open.<\/td><\/tr>
Liquidation fee<\/strong><\/td>Exchange or insurance fund, depending on the mechanism<\/td>When a position is liquidated.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Funding sits outside the maker\/taker fee schedule, so a lower trading commission does not reduce it. Like overnight swap on a CFD<\/a>, it affects holding costs, although this payment moves between traders and can reverse direction.<\/p>\n\n\n\n

Positive And Negative Funding Rate: Who Pays Whom?<\/h2>\n\n\n\n
\"Positive
Positive And Negative Funding Rate: Who Pays Whom?<\/figcaption><\/figure>\n\n\n\n

Positive and negative funding rates<\/strong> identify the paying side. The rate reflects the contract\u2019s premium to its index, a base interest component, and contract-specific limits:<\/p>\n\n\n\n