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Is the Funding Rate Applied to the Full Notional Value of the Position or Only the Margin?

Applied to the full notional value of the position, ensuring the payment is proportional to the total market exposure.
Greeks.Live21.11.25

Is the Funding Rate Applied to the Full Notional Value of the Position or Only the Margin?

The funding rate is applied to the full notional value of the position, not just the margin. The notional value is the total value of the contract being controlled, which is the position size multiplied by the contract price.

This ensures that the incentive to align the contract price with the spot price is proportional to the size of the exposure.

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