Skip to main content

Can a Trader Avoid Paying or Receiving the Funding Rate?

Yes, a trader can avoid paying or receiving the funding rate by ensuring their position is closed before the designated funding time. The payment or receipt only applies to positions that are open at the exact moment the funding exchange occurs.

By closing a position minutes before the exchange and reopening it immediately after, the trader avoids the payment.

How Does PFOF Affect the Execution Price a Retail Trader Receives?
Does a Margin Call Automatically Close Your Position?
How Can a Trader Use a Negative Funding Rate to Execute a ‘Cash and Carry’ Arbitrage Strategy?
How Does an Investor Close out a Covered Call Position before Expiration?