Source: https://mochatrade.com/learn/glossary/funding-rate

# Funding rate
URL: https://mochatrade.com/learn/glossary/funding-rate
Last modified: 2026-10-17

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](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough), it is [a live read on positioning](https://mochatrade.com/learn/start-here/how-to-read-us-market-news), and it [differs venue to venue for the same asset](https://mochatrade.com/blog/mocha-markets-weekly-28f). [Mochatrade funding rates](https://mochatrade.com/support/mochatrade-trading-fees-and-funding-rates-explained).

## Related terms

- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures
- Funding rate arbitrage: https://mochatrade.com/learn/glossary/funding-rate-arbitrage
- Open interest: https://mochatrade.com/learn/glossary/open-interest
- Round-trip trading cost: https://mochatrade.com/learn/glossary/round-trip-trading-cost
- Margin trading: https://mochatrade.com/learn/glossary/margin-trading
- Overnight financing / swap fee: https://mochatrade.com/learn/glossary/overnight-financing-swap-fee

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