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Annualized Funding Rate
An annualized funding rate expresses a periodic perpetual futures funding rate as an estimated annual rate. It makes funding levels with different intervals easier to compare.
Why it matters to you
A funding rate can look very small when viewed for a single funding interval but become substantial if similar conditions persist over a long period. Annualizing the rate gives traders a more intuitive way to understand the scale of funding. However, funding rates constantly change, so an annualized figure is not a prediction of what a trader will actually pay or receive over a year.
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