What's funding rate and how do I use it?
The funding rate is a mechanism used in X-Perps markets to help keep the contract price closer to the underlying spot price.
What's the funding rate for me?
Funding isn't the same as a trading fee. It is a periodic payment mechanism between long and short position holders.
Depending on the funding rate and your position:
when the funding rate is positive, long positions typically pay short positions
when the funding rate is negative, short positions typically pay long positions
This mechanism helps keep the X-Perps price anchored to the underlying spot market over time.
When will the funding be paid on OKX, and how do I view it?
On our platform, X-Perps funding is settled every 8 hours. You generally only pay or receive funding if your position is open at the relevant funding settlement time.
Below is how you can view the funding rate:
On the app:
Open your OKX app
Select Exchange for the mode
Select any pair eligible for Perps
Select the pairing with Perp from the list
Go to Info
Select Funding rate on the right side of the screen
On the web:
Log in to your OKX web account and choose Trade
Select Spot and margin
Select any pair eligible for Perps
Choose the pairing from the list
Go to the main header
Choose Funding rate
Why does funding matter?
Funding can affect the total cost of holding a position, especially if you keep it open for longer periods. That means even if price moves only slightly, your net result may still be impacted by:
trading fees
funding payments
position duration
When and how funding is applied?
Funding timing, calculation methodology, and payment intervals can vary. Always check the contract details and in-app product page for:
current funding rate
estimated next funding time
historical funding data
Important note: Funding rates can change over time and may become more significant during volatile market conditions.
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Disclaimer: X-Perps are leveraged derivatives. Leverage can amplify gains and losses. Losses may occur quickly and these products may not be suitable for all investors.