Who pays when the funding rate is positive?

When the rate is positive, long holders pay short holders; when negative the reverse applies.

How often is funding paid?

According to Binance, rounds usually occur every 8 hours and can be shorter in high volatility. Only positions open at that moment are charged.

Does the exchange collect the funding fee?

No; Binance states that the funding fee is paid between traders, not to the exchange.

Funding Rate Explained: Who Pays Whom in Perpetual Futures

In short: The funding rate sets the periodic payment between traders in a perpetual futures contract: when positive, longs pay shorts; when negative, shorts pay longs. On Binance rounds usually occur every 8 hours and the fee goes to the other side, not the exchange.

Last updated: 2026-10-22

What is the funding rate?

The funding rate sets the periodic payments between traders holding perpetual futures positions; these payments are called funding fees. The rate is based on the price difference between the perpetual contract and the underlying spot price^[1].

Who pays whom?

When the rate is positive (contract price above spot) long holders pay short holders; when it is negative (contract price below spot) short holders pay long holders^[1]. According to Binance, the funding fee is not paid to the exchange but between traders^[1].

How often is it paid?

According to Binance, funding rounds usually occur every 8 hours and the interval can be shorter in periods of high volatility^[1]. Only positions open at the funding round are charged; with no position at that moment no fee applies. Holding a position overnight can mean several payments^[1].

Cap and floor

According to Binance, a cap and floor limit the funding fee charged in a single round. For the current rate and funding times, check the exchange's own page^[1].

Why it matters

Funding turns into a cost, or income, of holding a position: if the rate direction is against the position, the trader pays every round. The effect is small in short trades but can add up in positions held for a long time. The sign of the rate is not a direction indicator on its own.

Disclaimer

Funding rates change over time; check the exchange's own page for the current rate. This page is educational, not investment advice.

Frequently asked questions

Who pays when the funding rate is positive?: When the rate is positive, long holders pay short holders; when negative the reverse applies^[1].
How often is funding paid?: According to Binance, rounds usually occur every 8 hours and can be shorter in high volatility. Only positions open at that moment are charged^[1].
Does the exchange collect the funding fee?: No; Binance states that the funding fee is paid between traders, not to the exchange^[1].

Related guides

Sources

What Are Funding Fees in Binance Futures?. Binance Blog. Accessed: 2026-10-22.

Source links were compared with the page content before publication; principles: Editorial Principles