Funding Rate Tracker

Perpetual futures contracts have no expiry date, unlike traditional futures. To keep the perpetual price aligned with the spot price, exchanges use a mechanism called the funding rate. This is a periodic payment between long and short traders.

When the funding rate is positive, longs pay shorts — this means the market is net long and traders are paying a premium to hold long positions. When negative, shorts pay longs, indicating bearish positioning. The rate resets every 8 hours on Binance.

Funding Payment = Position Size × Funding Rate

Daily Cost = 8h Payment × 3

Annualized = Rate × 3 × 365 × 100%

Example: with a $10,000 long position and a 0.0100% funding rate, you pay $1.00 every 8 hours, $3.00 per day, or roughly 10.95% annualized.

Positive rate: Longs pay shorts. The market is bullish-leaning. If you are long, you are paying the funding fee. If you are short, you are receiving it.

Negative rate: Shorts pay longs. The market is bearish-leaning. Longs receive the payment, shorts pay it.

Extreme rates (above 0.05% or below -0.05%) often signal crowded positioning and can precede sharp reversals as the cost of holding becomes unsustainable.

Funding rate arbitrage is a delta-neutral strategy: you go long on spot (or a low-fee margin account) and simultaneously short the perpetual futures contract. Since both positions cancel each other out directionally, your only exposure is the funding payment.

When funding is highly positive, your short perp position receives the funding payment every 8 hours while your spot long hedges the price risk. Annualized yields can exceed 30% during euphoric bull markets. The risk is that funding can flip negative, exchange counterparty risk, and liquidation risk on the short leg if not properly margined.