Q » What is perpetual swap funding rate?

Steven

02 Nov, 2025

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A » The perpetual swap funding rate is a mechanism used in cryptocurrency trading to maintain the contract price close to the underlying asset's price. It is a periodic payment exchanged between buyers and sellers based on the difference between the perpetual contract price and the spot price. This ensures price convergence and replicates holding the underlying asset, promoting market stability and avoiding discrepancies in pricing.

Michael

03 Nov, 2025

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A »The perpetual swap funding rate is a mechanism used in cryptocurrency derivatives to keep the price of a perpetual swap contract close to the underlying asset's spot price. It's a periodic payment exchanged between long and short positions, incentivizing traders to keep the contract price aligned with the spot price, thus preventing large deviations.

David

03 Nov, 2025

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