Funding rate

The funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above it, longs pay shorts; below, shorts pay longs; the crowded side pays. It moves your money every hour whether the price moves or not, it is a live read on positioning, and it differs venue to venue for the same asset. Mochatrade funding rates.

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In the help centreLearn what a perpetual contract is on Mochatrade
  • Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
  • Funding rate arbitrageFunding rate arbitrage is holding a long on one venue and a short on another in the same asset, with no view on price…
  • Open interestOpen interest is the total size of all open positions in a contract, how much money is in the trade. Rising open…
  • Round-trip trading costRound-trip cost is everything a trade costs from entry to exit: the spread twice, the fee twice, slippage, and funding…
  • Margin tradingMargin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a…
  • Overnight financing / swap feeOvernight financing, or a swap fee, is the daily interest a broker charges for holding a leveraged position past the…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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