Trading

Funding Fee in Futures Trading

2024-06-22 09:4211717

What is Funding Rate?

Funding Rate acts as a primary mechanism to ensure that the Bitget's last traded price of a Futures position is anchored to the spot market price. Funding fee occurs daily in every 8 hours at 00:00, 08:00, 16:00 (UTC +8). You will be charge or you will receive funding fee if you hold a position at any one of these time slots, depending which long or short position you are holding.

When the market is bullish, the funding rate is usually positive. Traders who hold long positions will pay to the traders who hold the short positions. On the other hand, short traders will pay to long traders when the market is going bearish and the funding rate is usually negative.

Bitget does not charge any fees from traders on funding. Funding fees are settled directly between traders as long as they hold Futures positions.

The funding fee (paying) will be deducted from the trader's position margin of the position or its available Futures balance. The risk of liquidation will increase if the trader has no sufficient funds to hold the position after deduction of funding fee.

Calculation of Funding Fee

Funding Fee = Position size * Mark Price * Funding Rate

Note: Position size is the same as quantity/unit of a contract.

Important Note:

Some traders who open or close a Futures position in one ~ fifteen seconds before or after the funding fee schedules 00:00, 08:00, 16:00 (+8 UTC) may not receive/distribute funding fee because the processing time during the funding interval may take up from fifteen seconds to a minute.

Therefore, during the distribution process, Bitget system will identify accounts with positions and disburse the funding fee accordingly.