What Is the Typical Frequency for Funding Rate Payments in Perpetual Futures Markets?
The standard frequency for funding rate payments is typically every eight hours. This means the funding rate is calculated and exchanged three times a day.
Some exchanges may offer different intervals, such as every four hours or even every hour, but eight hours remains the most common convention in major cryptocurrency perpetual markets.
Glossar
Funding Rate Payments
Mechanism ⎊ Funding Rate Payments represent periodic exchanges calculated by derivatives exchanges to equalize the price of a perpetual contract with the underlying spot market, mitigating price discrepancies and ensuring contract convergence.
Funding Rate
Mechanism ⎊ Funding Rate represents a periodic payment exchanged between traders holding opposing positions in perpetual futures contracts, establishing an equilibrium between contract prices and the underlying spot market.
Rate Payments
Payment ⎊ Rate Payments constitute the periodic cash flows exchanged between counterparties in interest rate derivatives or perpetual swap contracts, reflecting the net cost of financing a leveraged position.