BINANCE COIN FUNDING RATE

The funding rate on the coin's perpetual future.

Why funding exists. A regular future lives until a set date. On that date it is settled at the spot price. So by that date the futures and spot prices must converge, and the market pulls them together in advance.

A perpetual future has no date. It is never settled at spot. So nothing makes it converge: if everyone wants to go long, the future runs above spot and stays there, with nothing to bring it back.

Funding replaces that date. Once per period, the side that pulled the future away from spot pays the other side. Future above spot — longs pay. Holding a long gets expensive, holding a short pays. People sell the future, buy spot, collect the payments, and the future returns to spot. Below spot it is the other way around: shorts pay.

Without funding, a perpetual future would be a separate coin with its own price: you couldn't hedge spot with it, and liquidations would be calculated from a price unrelated to the market.

The rate is the size of this payment.

• The rate is in percent per settlement period, usually 8 hours.
• Positive — longs pay shorts. Negative — shorts pay longs.
• The line oscillates around zero, colored by sign.
• The values are small: 0.01 is one hundredth of a percent. Precision is up to five decimal places.

Three things. First — how much it costs to hold a leveraged position and who pays: this is the only indicator that is directly in money. Second — which side holds the leverage: the side pushing the future away from spot pays. Third — not mistaking high funding for a reversal signal.

For example.

• A rate of +0.10% when hundredths of a percent are normal. A long pays 0.1% every 8 hours — 0.3% a day, 9% a month. A short receives the same. Holding a long is expensive; with a short, you get paid.
• A rate of −0.05% — shorts pay: the future is below spot, leverage is on the sellers' side.
• The rate stays above +0.02% — leverage is with the longs. Next, check COIN LIQS: when the price moves against them, the liquidations hit them. By our data, on such days long liquidations are 1.5 times higher than usual.
• The rate went up and the price keeps moving — that's normal. In 2020–2026, the coins with the highest funding among the rest more often outperformed the market over the next day than lagged it, and those with the lowest lagged. Extreme values, from 0.03% per 8 hours, no longer give continuation: half the cases there end negative.

Don't confuse it with LONG/SHORT RATIO. That one is how many accounts or how much money is long. This one is the futures price relative to spot. Many longs by accounts and positive funding are different things; one doesn't follow from the other.

In Workspace V2 the indicator is plotted only on the daily timeframe 1D. On 15m, 1h and 4h it shows “no data”.

There are no inputs — the “Inputs” tab is empty. Colors and lines are under Style.