Questions people ask
How is the funding fee calculated?
Funding payment = position value x funding rate. On a 10,000 USD position with a rate of +0.01% every 8 hours, a long pays 1 USD per payment, 3 USD a day and about 10.95% of the position value over a year.
Who pays funding, longs or shorts?
When the rate is positive, longs pay shorts. When it is negative, shorts pay longs.
Is funding charged on margin or on position value?
On the full position value. A 10,000 USD position pays on 10,000 USD even if you posted only 1,000 USD of margin.
How often is funding paid?
Many exchanges settle every 8 hours. Some contracts use 4 hours or every hour, so check each contract.