what is funding in binance futures

what is funding in binance futures?

What is Funding Rate? Funding rates are periodic payments either to traders that are long or short based on the difference between perpetual contract markets and spot prices. Therefore, depending on open positions, traders will either pay or receive funding.2022年1月27日

Considering this,What is Binance funding?

Funding Rates consist of two main components: the interest rate and the premium. On Binance Futures, the interest rate is fixed at 0.03% daily (0.01% per funding interval), with the exception of contracts such as BNBUSDT and BNBBUSD, where interest rates are 0%.

Also asked,How is funding calculated Binance?

Capped Funding Rate = clamp (Funding Rate, -1 * Maintenance Margin Ratio, 1 * Maintenance Margin Ratio). For more on funding rate, please refer to Introduction to Binance Futures Funding Rates.

Correspondingly,How is funding rate paid?

The funding rate is calculated by considering the interest rates for both trading pair currencies and the Premium Index. The calculation either yields a positive (longs pay shorts) or a negative (shorts pay longs) funding rate.

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