Negative Funding Rates: Who Pays and How to Calculate
A negative funding rate means shorts pay longs at that settlement. It does not mean everyone pays a negative fee. A positive rate reverses the payment direction, while a zero rate produces no funding transfer. Binance Academy explains the mechanism.
Calculate the payment
For a USD-margined perpetual position:
Payment amount = notional value at settlement × absolute funding rate.
Use the rate’s sign and your position direction to determine whether you pay or receive. Assume a 1,000 USDT position and a settled rate of −0.02%:
1,000 × 0.0002 = 0.2 USDT.
| Position | Result for this settlement |
|---|---|
| Long, 1,000 USDT notional | Receives 0.2 USDT |
| Short, 1,000 USDT notional | Pays 0.2 USDT |
If 100 USDT margin at 10x supports that position, the calculation still uses approximately 1,000 USDT. Using margin alone would produce the wrong amount. Position size and the settlement mark price can change the notional value. See the official funding calculation.
Check the interval and settlement record
On Binance Futures, check the funding rate and countdown above the chart. Under Data → Futures Data, open current funding rates or funding-rate history.
A displayed estimate can change before settlement. Use the settled rate when checking an actual payment. Intervals can change by contract; do not assume every market settles every eight hours. Processing windows also matter when opening or closing near the scheduled time.
The futures market monitor helps compare displayed rates. Read the interval alongside the percentage: −0.01% every hour and −0.01% every eight hours represent different schedules. Neither figure alone is a fixed daily cost.
Keep funding separate from trading fees
The trading fee guide explains execution fees on opening and closing trades. Funding is a transfer between position holders, so a trading-fee rebate should not automatically be applied to it.
Funding is also separate from price profit or loss. Receiving 0.2 USDT does not offset a larger loss if the market moves against the position. Its sign is not a count of long and short traders, or a forecast of the next candle.
Frequently asked questions
Who pays when the funding rate is negative?
Short positions pay long positions for that settlement. A positive rate reverses the direction. Participation depends on the position held at settlement and the contract rules.
Is funding calculated on margin or position value?
For USD-margined perpetuals, funding uses the position’s notional value at settlement, rather than margin alone. Changing leverage does not change funding if notional value and the rate stay the same.
Does negative funding mean the price will rise?
No. The sign determines the payment direction, not the next price move. Funding received can also be smaller than a loss on the position.