The funding rate refers to the exchange of funding fees between long and short position holders in futures trading. The calculation of the funding rate is typically based on the difference between the futures contract price and the spot market price. A positive funding rate means that long position holders pay the fee to short position holders, while a negative funding rate means that short position holders pay the fee to long position holders. The funding rate is generally calculated and paid every 8 hours.
What is the funding rate and how is it calculated?
