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Funding Payment
A funding payment is the amount transferred between eligible long and short perpetual futures positions at a funding event. It is calculated using the applicable funding rate and the position according to the contract's rules.
Why it matters to you
Funding affects the cost of holding a perpetual position over time. A trade can move in the direction you expected while repeated funding payments still reduce the eventual return. Likewise, a trader on the receiving side of funding may receive payments while the position remains eligible.
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