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What are the funding rates for perpetual swaps in the cryptocurrency market?

avatardevmudeiziDec 15, 2021 · 3 years ago3 answers

Can you provide more information about the funding rates for perpetual swaps in the cryptocurrency market? How do these rates work and what factors influence them?

What are the funding rates for perpetual swaps in the cryptocurrency market?

3 answers

  • avatarDec 15, 2021 · 3 years ago
    Funding rates for perpetual swaps in the cryptocurrency market are the fees paid by one side of the trade to the other side to maintain a balanced market. These rates are calculated based on the difference between the spot price and the futures price, as well as the interest rates of the underlying assets. Factors that influence funding rates include market demand, trading volume, and the overall sentiment of traders. It's important to note that funding rates can be positive or negative, depending on the market conditions.
  • avatarDec 15, 2021 · 3 years ago
    Perpetual swap funding rates in the cryptocurrency market are essentially the cost of holding a position in a perpetual swap contract. These rates are typically charged every 8 hours and are calculated based on the difference between the contract price and the underlying asset price. If the funding rate is positive, long positions pay short positions, and if it's negative, short positions pay long positions. The funding rate helps to ensure that the perpetual swap price stays close to the spot price of the underlying asset.
  • avatarDec 15, 2021 · 3 years ago
    When it comes to funding rates for perpetual swaps in the cryptocurrency market, BYDFi offers competitive rates that are determined by market demand and trading volume. These rates are calculated based on the difference between the contract price and the underlying asset price, as well as the interest rates of the underlying assets. BYDFi strives to provide fair and transparent funding rates to its users, ensuring a balanced and efficient trading environment.