Have you felt a little "heartache" about the transaction fee recently? Don't worry. Simply put, no matter how the market fluctuates, as long as there is a transaction, you may be charged or paid a certain funding rate!
Think about it, have you ever experienced a period of market volatility, and you suddenly found that your account balance increased or decreased a little bit? That's the funding rate quietly at work! If the rate is positive, then friends who are long positions should remember to pay friends who are short positions; and vice versa. This sounds a bit like a "mutual aid fee" in the market, but it does have its indispensable role.
The funding rate plays a very critical role - that is to ensure that the price of the perpetual contract is always closely linked to the market it represents. In this way, the price of the perpetual contract will slowly approach the true price of the underlying asset. For example, just like the "grab red envelope" game we usually play, although sometimes it is a bit "sad" to send out the red envelope, it is this interaction that makes the game more interesting and challenging.
Taking Binance as an example, the calculation time of the funding rate is usually once every 8 hours. Especially during the time periods of 08:00 - 16:00 and 24:00 Hong Kong time, trading is particularly active. Remember, only at these times when the funding rate is charged, no matter what your position is, as long as you have a position, it will involve the payment or collection of the funding rate. Here is a reminder: Even if you open a position at the last second (such as 08:00:59), it will still be counted in this billing!
