Glossary › funding rate
Trading glossary · markets
funding rate
A small fee that crypto traders using borrowed money may pay or receive regularly for keeping their trade open.
The fuller meaning
The periodic payment exchanged between long and short holders of crypto perpetual futures, which keeps the contract price near spot; the lessons list crypto funding payments with forex swaps as financing costs on leveraged positions held overnight. It adds up quickly for frequent or long holders.
funding rate, also called funding payment.
Related words
24/7 market · after-hours · Asian session · ask · base currency · bid · bid-ask spread · Bitcoin · BSE · business income