Funding rates for Bitcoin and Ethereum
The payment longs make to shorts. Positive values indicate a surplus on the long side.
The payment longs make to shorts. Positive values indicate a surplus on the long side.
- Bitcoin
- 0.0003 %
- Ethereum
- 0.0065 %
Embed this chart
With script, adjusts its own height
iframe only, for sites without scripts
Free to embed under the CC BY 4.0 licence. Keep the attribution and the link to CryptoTicker.
How to read the chart
Perpetual contracts have no expiry date. To keep their price close to the spot price anyway, the long and short sides pay each other a balancing payment at fixed intervals, the funding rate. When it is positive, long positions pay short positions. That is normal in rising markets, because more traders use leverage to bet on higher prices.
Unusually high positive rates point to an overheated, heavily leveraged market in which a pullback can hit many positions at once. Clearly negative rates show a build-up of bets on falling prices. The chart shows the rates for Bitcoin and Ethereum at Binance and fetches them again every five minutes.
How this number is produced
The payment leveraged longs make to shorts so the perpetual price tracks spot. Positive values indicate a surplus on the long side. Shown is the most recent rate on Binance.
What it does not say
The rate is set anew each interval and fluctuates accordingly. A single value is a snapshot, not a trend, and applies to this one exchange.
- Source
- Binance Futures
- Update interval
- 5 min
- CC BY 4.0
- CC BY 4.0
Frequently asked questions
What is a normal funding rate?
At Binance the rate usually sits at 0.0100% per settlement period in calm phases. That value results from the fixed interest component of the formula when the perpetual and the spot price barely differ. Clearly higher values show an overheated long side, negative values an excess on the short side.
How often is the funding rate paid?
At Binance, Bitcoin and Ethereum usually settle every eight hours. Anyone holding a position at the settlement time pays or receives the payment on the value of that position. Anyone who closes the position before is not affected. During strong market moves, exchanges can shorten the interval.
Who receives the funding payment?
The payment flows directly between traders, the exchange keeps none of it. With a positive rate, holders of long positions pay holders of short positions, with a negative rate it is the other way round. Over time this can noticeably raise the cost of a leveraged strategy that sits on the crowded side of the market.
If you want to buy or sell based on these numbers, you can compare the fees and regulation of providers here: Crypto exchanges compared