b9_1155what is funding rate?
regular payments between long and short holders of perpetual futures that keep the contract's price close to the spot price.
perpetual futures are futures with no expiry date. when you pay funding, it reduces your margin over time.
related words
- mark price a "fair" price, mostly based on an index of spot prices, that many exchanges use to trigger liquidations.
- correlation how much two things tend to move together, from −1 (move in opposite directions) to +1 (move perfectly in step).
- isolated vs cross margin two ways an exchange decides how much of your money backs a leveraged position.
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