Learn / Funding Rate
What is Funding Rate in crypto?
Periodic payment between long and short traders that keeps a perpetual future priced close to spot.
Definition
The funding rate is a small recurring payment exchanged between traders holding long and short positions in a perpetual futures contract. It exists to keep the perpetual price anchored to the underlying spot price.
How it works
When the funding rate is positive, longs pay shorts — a sign the market is leaning bullish and price trades above spot. When it is negative, shorts pay longs. Funding is typically settled every 8 hours. Extreme funding often marks crowded positioning that can unwind sharply.
Track funding rate on TRIXO
TRIXO shows the live funding rate for every perpetual pair across Binance, Bybit and MEXC side by side, so you can spot funding spreads between exchanges at a glance.