Compare perpetual funding rates

Why the same position costs different amounts

Funding transfers depend on the contract and can be positive, negative or zero. The sign describes the payment direction; it does not establish traders’ motives or predict the next price move. Under the usual long-to-short convention, a positive rate means long positions pay short positions. A quoted rate must be read with its interval, accrual method and position valuation. It is not a guaranteed income stream for the receiving side. Under the same convention, a negative rate means short positions pay long positions. Rates can change or reverse. Price losses, fees and changes in collateral can exceed funding received; the sign alone is not a trading signal. Each open contract has a long side and a short side. Matched contract exposure does not mean equal numbers of traders: one trader can hold many contracts. A funding rate does not count traders.

Venues can use different premium and interest components, observation windows, caps, valuation prices and accrual methods. Check the current specifications and rate data for the exact contract. A formula from one venue should not be treated as a universal perpetual-futures rule.

Some contracts charge positions held at designated settlement times; others accrue funding while the position is open and settle it later or when the position changes. Closing before a timestamp does not universally mean no funding is owed. Check processing rules near settlement as well. Kraken accrues funding continuously and settles it at the end of the hour or when the net position changes.

For the same notional exposure and an unchanged rate, a lower annualized rate means a lower funding payment for a long; a higher rate favors the short side. This compares the funding component only. It does not establish the cheapest total trade or a profitable hedge: entry and exit fees, price basis, spread, slippage, collateral and changing rates also matter. Annualization is a constant-rate illustration, not a one-year return forecast.

Compare before opening an account

The total is not just the trading percentage: funding, currency conversion, spread, slippage, execution fees and withdrawal charges can all matter. Compare the amount of the same asset you would receive for the same cash budget at approximately the same time. Separate a simple quoted purchase from an order-book trade; comparing different interfaces can make one exchange appear cheaper without being a like-for-like test.

Related

Methodology references