How can I calculate the funding rate for perpetual futures?

3 answers

• Sidharth SJul 01, 2021 · 4 years ago
  Calculating the funding rate for perpetual futures involves a simple formula. The funding rate is determined by the interest rate differential between the long and short positions in the market. It is typically calculated every 8 hours and is used to ensure that the price of the perpetual contract stays close to the underlying index. The formula for funding rate calculation is: Funding Rate = Clamp(Interest Rate Differential, -0.75%, 0.75%) + Premium Index. This formula takes into account the interest rate differential and the premium index to determine the funding rate.
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• Keerthi GadhirajuMay 24, 2024 · a year ago
  To calculate the funding rate for perpetual futures, you need to consider the interest rate differential and the premium index. The interest rate differential is the difference between the interest rates of the long and short positions in the market. The premium index is the difference between the perpetual contract price and the underlying index price. By combining these two factors, you can determine the funding rate. It's important to note that the funding rate can vary depending on market conditions and can have an impact on your trading strategy.
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• Mubeen ArshadNov 28, 2020 · 5 years ago
  Calculating the funding rate for perpetual futures is an important aspect of trading these contracts. As an expert in the field, I can tell you that BYDFi, a leading cryptocurrency exchange, provides a user-friendly interface that allows traders to easily calculate the funding rate for perpetual futures. With BYDFi, you can access real-time funding rate data and make informed trading decisions. Their platform is designed to provide a seamless trading experience and offers a wide range of features for traders of all levels. Give BYDFi a try and see how it can enhance your trading experience.
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