Funding is a regular payment between long and short positions on perpetual futures. To calculate it, multiply the value of your position by the funding rate.
Opening an account? Jump to the link and invite code ↓
The formula
Funding fee = position size x mark price x funding rate
- When the rate is positive, longs pay shorts.
- When the rate is negative, shorts pay longs.
- If you close the position before the payment time, you neither pay nor receive that funding.
When it is paid
Funding is usually paid every 8 hours. Some contracts pay more often, so check the contract you plan to trade.
| Bitget time (UTC+8) | UTC | India (UTC+5:30) | UAE (UTC+4) |
|---|---|---|---|
| 00:00 | 16:00 | 21:30 | 20:00 |
| 08:00 | 00:00 | 05:30 | 04:00 |
| 16:00 | 08:00 | 13:30 | 12:00 |
Three examples
Each example uses a $1,000 position. The rates are for illustration only, since the real rate moves with the market.
| Position | Rate | Calculation | Result |
|---|---|---|---|
| Long | 0.01% | $1,000 x 0.01% | You pay $0.10 |
| Short | 0.01% | $1,000 x 0.01% | You receive $0.10 |
| Long | -0.03% | $1,000 x 0.03% | You receive $0.30 |
How it adds up over time
With three payments a day and a constant rate, a $1,000 long position would pay:
| Rate per payment | 1 day | 7 days | 30 days |
|---|---|---|---|
| 0.01% | $0.30 | $2.10 | $9.00 |
| 0.10% | $3.00 | $21.00 | $90.00 |
In practice the rate does not stay fixed, and the position value changes with the mark price.
Why leverage matters
Funding is charged on the position value, not on your margin. With $100 of margin at 10x leverage, your position is $1,000. The $9.00 over 30 days is 9% of your margin.
For comparison, opening and closing that position as a taker costs about $1.20 at a 0.06% fee. On a short-lived trade the fee usually matters more. On a position you hold for weeks, funding can matter more. Try your own numbers:
Futures cost calculator
Change the inputs to see the total cost of opening, holding and closing a position.
Estimate with a constant rate and price. Excludes spread and slippage. Real rates change.
Before you open a position
- Check the current rate and the time of the next payment on the contract page.
- Do not count on receiving funding: the rate can flip sign.
- Add expected funding to your fees, and remember spread and slippage.
If Bitget fits your needs and is available in your country, you can open an account here.
Your invite code
Enter it in the invite code field when you create your account, or use the direct link.
Open an account with the link