How Often Is the Funding Rate Typically Exchanged between Traders?
The funding rate is typically exchanged every eight hours on most major crypto perpetual futures exchanges. However, some exchanges may use a different frequency, such as every four hours or every hour.
The payment is made directly between the long and short positions without involving the exchange's treasury.
Glossar
Perpetual Futures
Contract ⎊ Perpetual futures represent a type of financial derivative contract, specifically within the cryptocurrency and options trading space, that replicates the payoff of a traditional futures contract without a fixed expiration date.
Long and Short Positions
Position ⎊ These represent the two fundamental directional exposures in derivatives markets, either profiting from an increase in the underlying asset price or from a decrease.
Funding Rate
Cost ⎊ The Funding Rate is the periodic payment exchanged between long and short positions in perpetual futures contracts, designed to anchor the contract price to the underlying spot index price.