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Can a Trader Avoid Paying the Funding Rate by Closing a Position Just before the Interval?

Yes, a trader can avoid paying or receiving the funding rate by closing their position before the scheduled funding time. The payment is only processed for positions that are open at the exact moment of the funding exchange.

This creates a small window of opportunity for short-term traders to time their entries and exits to avoid a negative funding payment or capture a positive one.

What Is a Liquidity Provider (LP) Token and How Is It Related to IL?
Does the Funding Rate Payment Directly Affect a Trader’s Margin Balance?
What Is the Significance of the 8-Hour Interval for Funding Rate Payments?
How Does Dividend Payment Affect the Early Exercise Decision for a Call Option?