Most exchanges use funding rate payment intervals of 1, 4, or 8 hours. Generally, shorts pay longs if the trend is up, and longs pay shorts if the trend is down. We’ll get into how that works next.Ī crypto funding rate is a small percentage of your position’s value that you pay to (or receive from) traders on the other side of the trade. There’s a cost to holding a position that’s on the opposite side of the market sentiment. You can keep a perpetual contract open as long as you want - or as long as you can afford it.
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