What is a perpetual funding rate?
Perpetual swaps (“perps”) don’t expire, so exchanges use a funding payment mechanism to keep the perp price anchored to spot. Funding is a periodic transfer between traders:
- When funding is positive, longs pay shorts (long positioning is crowded).
- When funding is negative, shorts pay longs (short positioning is crowded).
- Funding is usually settled every 8 hours, but the interval can vary by venue and instrument.
How to read PerpHQ funding tables
PerpHQ shows the latest funding snapshot across exchanges and symbols, plus the next settlement timestamp. For trading decisions, don’t look at a single number in isolation—use it as a signal.
Start here: All funding rates. Then click a market to see a mini history panel and key timestamps.
- Compare funding across exchanges for the same symbol (e.g., BTCUSDT) to spot dislocations.
- Watch whether extreme funding persists for multiple intervals (more meaningful than a one-off spike).
- Always check the funding interval and next funding time before acting.
Common funding strategies (and pitfalls)
- Mean reversion / sentiment: very high positive funding can reflect euphoric longs—sometimes followed by a flush. But extremes can persist.
- Funding capture: if funding is consistently positive, some traders hedge to collect funding. Real outcomes depend on fees, slippage, and basis.
- Venue shopping: for the same exposure, you may prefer the exchange with lower fees and more predictable funding mechanics.
Not investment advice. Use risk controls and verify contract specs on the venue.