How often does Bybit calculate funding rates?

Bybit generally calculates its funding rates every 8 hours i.e. at 00:00 UTC, 08:00 UTC and 16:00 UTC. These are known as “funding intervals”. However, Bybit may adjust the interval depending on the live market situation. Particularly if there is a significant gap between the Last Traded Price and the Mark Price.

What is funding rate and how to use it?

As a crypto trader, you should know what funding rate means and how to use it to your advantage. A positive funding rate means that a crypto perp’s price is higher than the spot rate, and going short will earn you a funding fee.

How is the funding rate calculated on BitMEX?

Like most exchanges, the funding rate is calculated and paid out every 8 hours on BitMEX. The funding fee and funding rate are calculated as follows: Funding Rate (F) = Premium Index (P) + Clamp (Interest Rate (I) - Premium Index (P), 0.05%, -0.05%) BitMEX charges a fee of 0.075% on trades that remove liquidity from the market.

What is funding arbitrage?

This is called funding arbitrage. Funding rate is not universal across exchanges; one usually has higher funding rate than another. Therefore, if (for example!) you short 400 dollars on Binance and long an equal amount on Bybit, the difference in funding rates goes into your pocket.