Summary of 9. Funding Rate (Perpetual Contracts / PERPS) - Kraken Futures

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The funding rate is a fee charged by exchanges to encourage the futures price to correspond to the underlying spot price. It can swing back and forth between positive and negative multiple times per day.

• 00:00:00 The funding rate is a fee charged by exchanges to encourage the futures price to correspond to the underlying spot price. It can swing back and forth between positive and negative multiple times per day.
• 00:05:00 The funding rate is a small amount paid by one side of a futures contract to the other to encourage the contract price to stay in line with the spot index price. The funding rate changes every four hours, but in general during bull markets the funding rate will tend to be positive, which means Long's will pay shorts and during bear markets the funding rate will tend to be negative, which means shorts will pay Long's.