Is the Funding Rate Always Paid by the Trader or Can It Be Received?

The funding rate is a payment that can be either paid or received by the trader. It is a peer-to-peer exchange between the two sides of the market.

If the rate is positive, a long position pays and a short position receives. If the rate is negative, a short position pays and a long position receives.

The exchange only facilitates the transfer; it does not collect the fee itself.