#SpotVSFuturesStrategy What Is the Funding Fee?

In perpetual futures, there's no expiration date, so exchanges use a mechanism called the funding rate to keep the contract price close to the spot price.

Funding fees are payments between traders—not a fee to Binance.

If the funding rate is positive, longs pay shorts.

If it's negative, shorts pay longs.

This rate is calculated every 8 hours (00:00, 08:00, 16:00 UTC on Binance).