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 tradersānot 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).
---
š° Why Can the Funding Fee Be Higher Than Your Profit?
Hereās how:
1. Small Profit, Large Position:
Say youāre scalping and you make $5 profit on a $10,000 position.
If the funding rate is 0.03%, youād pay: $10,000 Ć 0.0003 = $3 per funding interval.
If you hold through three intervals, youād lose $9 just in funding fees.
Net result: $5 profit - $9 funding = -$4 loss.
2. High Leverage Makes It Worse:
Funding is based on the position size, not your margin or profit.
20x leverage = small price change, big position size = higher funding impact.
3. Low Volatility or Sideways Movement:
If youāre in a flat market but paying funding every 8 hours, the funding can erode your small gains.
---
š§ Is This a Binance Issue?
Nope, not a Binance-specific issue. Itās just how perpetual contracts work on all platforms (Bybit, OKX, etc.).
However, Binanceās high open interest in some pairs (like $VIC) can cause more extreme funding rates at times.
---
ā What You Can Do:
1. Check the Funding Rate Before You Enter a Trade
Use Binanceās Funding Rate History or live ticker.
Avoid entering long positions when the rate is high and positive.
2. Avoid Holding Positions Across Funding Times
Close before the 8-hour mark if possible.
Example: enter at 06:00 and close by 07:50 UTC.
3. Trade Low Funding/Negative Funding Coins
If youāre short and the rate is positiveāyou earn funding.
4. Factor Funding into Your Risk Management
Funding fee = part of your trading cost,#TrumpTariffs #DayTradingStrategy #MuskAmericaParty #SpotVSFuturesStrategy #Write2Earn
#BinanceEarnYieldArena Binance Earn has launched a new Earn Yield Arena , a campaign hub where users can easily participate in multiple campaigns with exclusive rewards of up to $1M. Binance users can earn rewards from Flexible and Locked Products, ETH Staking, SOL Staking, Dual investment, and more to maximize their earnings. Create a post with #BinanceEarnYieldArena to earn Binance Points and unlock a share of 1000USDC in rewards! Eligible posts must contain at least 100 characters and a maximum of 1 hashtag. All eligible posts will equally share 1,000 USDC token vouchers, capped at $5 per participant.Ā Your posts can include the following:Ā 1. Your experience participating in campaigns from the Earn Yield ArenaĀ 2. Tips on how to maximize your earningsĀ 3. Investment strategies amidst market fluctuationsĀ Head to the Task center to claim your posts after posting, point rewards are first come first serve!Ā Activity Period: 2025-03-25 to 2025-04-13Ā T&Cs:Ā -This Activity may not be available in your region. Eligible users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order for their entries to be counted as valid.Ā Reward Distribution: -Token vouchers will be distributed within 21 working days after the Activity ends. Users will be able to login and redeem their token voucher rewards via Profile > Rewards Hub.Ā -All token voucher rewards will expire 14 days after distribution. Eligible users should claim their vouchers before the expiration date. Learn how to redeem a voucher. -Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards.Ā -Binance reserves the right to cancel a userās eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management
#JELLYJELLYFuturesAlert 1whale dumped $4.85M in $JELLY, causing a $12M loss for Hyperliquidās HLP. Then, Hyperliquid delisted $JELLYāwhat happened? Full breakdown inside.
$BNB ETH key point is about to be triggered, the following window has only 12 minutes left! A breakeven stop-loss strategy has been set. āā Follow the chart for simulation šŖ
$BTC Binance Earn has launched a new Earn Yield Arena , a campaign hub where users can easily participate in multiple campaigns with exclusive rewards of up to $1M. Binance users can earn rewards from Flexible and Locked Products, ETH Staking, SOL Staking, Dual investment, and more to maximize their earnings. Create a post with #BinanceEarnYieldArena to earn Binance Points and unlock a share of 1000USDC in rewards! Eligible posts must contain at least 100 characters and a maximum of 1 hashtag. All eligible posts will equally share 1,000 USDC token vouchers, capped at $5 per participant.Ā Your posts can include the following:Ā 1. Your experience participating in campaigns from the Earn Yield ArenaĀ 2. Tips on how to maximize your earningsĀ 3. Investment strategies amidst market fluctuationsĀ Head to the Task center to claim your posts after posting, point rewards are first come first serve!Ā Activity Period: 2025-03-25 to 2025-04-13Ā T&Cs:Ā -This Activity may not be available in your region. Eligible users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order for their entries to be counted as valid.Ā Reward Distribution: -Token vouchers will be distributed within 21 working days after the Activity ends. Users will be able to login and redeem their token voucher rewards via Profile > Rewards Hub.Ā -All token voucher rewards will expire 14 days after distribution. Eligible users should claim their vouchers before the expiration date. Learn how to redeem a voucher. -Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards.Ā -Binance reserves the right to cancel a userās eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.
#BinanceEarnYieldArena šBinance Earn has launched a new Earn Yield Arena , a campaign hub where users can easily participate in multiple campaigns with exclusive rewards of up to $1M. Binance users can earn rewards from Flexible and Locked Products, ETH Staking, SOL Staking, Dual investment, and more to maximize their earnings. Create a post with #BinanceEarnYieldArena to earn Binance Points and unlock a share of 1000USDC in rewards! Eligible posts must contain at least 100 characters and a maximum of 1 hashtag. All eligible posts will equally share 1,000 USDC token vouchers, capped at $5 per participant.Ā Your posts can include the following:Ā 1. Your experience participating in campaigns from the Earn Yield ArenaĀ 2. Tips on how to maximize your earningsĀ 3. Investment strategies amidst market fluctuationsĀ Head to the Task center to claim your posts after posting, point rewards are first come first serve!Ā Activity Period: 2025-03-25 to 2025-04-13Ā T&Cs:Ā -This Activity may not be available in your region. Eligible users must be logged in to their verified Binance accounts whilst completing tasks during the Activity Period in order for their entries to be counted as valid.Ā Reward Distribution: -Token vouchers will be distributed within 21 working days after the Activity ends. Users will be able to login and redeem their token voucher rewards via Profile > Rewards Hub.Ā -All token voucher rewards will expire 14 days after distribution. Eligible users should claim their vouchers before the expiration date. Learn how to redeem a voucher. -Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards.Ā -Binance reserves the right to cancel a userās eligibility in this activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.