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Who Pays Whom When the Perpetual Swap Is Trading at a Premium to the Spot Price?

When the swap is at a premium (positive funding), long position holders pay short position holders.
Greeks.Live14.11.25

Who Pays Whom When the Perpetual Swap Is Trading at a Premium to the Spot Price?

When the perpetual swap is trading at a premium (swap price > spot price), the funding rate is positive. In this scenario, long position holders pay short position holders.

This payment incentivizes traders to take short positions, which puts downward pressure on the swap price, moving it back towards the spot price.

What Is the Primary Function of a ‘Funding Rate’ in Perpetual Futures?
How Does the ‘Funding Rate’ Mechanism Ensure the Perpetual Swap Price Tracks the Spot Price?
How Do Funding Rates Work in Perpetual Swap Contracts?
Who Pays Whom When the Perpetual Swap Is Trading at a Premium to the Spot Price?

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