There are two components to the Funding Rate: the Interest Rate and the Premium. Binance uses a flat interest rate, with the assumption that holding cash equivalent returns a higher interest than BTC equivalent. On Binance Futures, the interest rate is fixed at 0.03% daily by default (0.01% per funding interval since funding occurs every 8 hours).
What is action & funding rate arbitrage on Binance?
Action - Allows traders to quickly navigate to Perpetual or Spot Markets on Binance via the “Trade” button. Funding Rate Arbitrage provides users with relevant arbitrage information about Perpetual Futures Contracts and their spot equivalents in the market.
What is a funding rate?
1. What is the Funding Rate? Funding rates are periodical cash flows exchanged between long- and short-position holders. The absolute amount per lot will be based on the difference between the perpetual Futures and index prices. When the market is bullish, the funding rate is usually positive.
How do I set a funding fee trigger on Binance?
1. Log in to your Binance account. Click [Derivatives] - [USDⓈ-M Futures]. 2. Click the manage button to go to [Preference]. 3. Go to the [Notification] tab to toggle on the [Funding Fee Trigger] button. You can also customize the Funding Rate charges percentage between 0.0001%~0.75%.
