When funding is positive, longs typically pay shorts (and vice versa when negative). Over days, funding can dominate short-term P&L on high leverage.
Estimate funding P&L separately from price P&L so you know what the position costs to hold.
Funding rate
A periodic payment between long and short traders on perpetual futures that keeps the contract near spot.
By Nadeem Ahmed·Updated 2026-09-09
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Frequently asked questions
What does Funding rate mean in crypto?+
A periodic payment between long and short traders on perpetual futures that keeps the contract near spot.
When do traders or builders use Funding rate?+
When funding is positive, longs typically pay shorts (and vice versa when negative). Over days, funding can dominate short-term P&L on high leverage.
Which CryptonicTools help with Funding rate?+
Try Funding Rate PnL, Short Position PnL, Crypto Profit Calculator on CryptonicTools — free, no account.
Updated 2026-09-09. Educational only — not financial advice. All terms