Direct answer
When the funding rate is positive longs pay shorts, and when it is negative shorts pay longs; the amount is position value × rate. Binance's and OKX's main contracts settle every 8 hours by default, and only positions open at the settlement pay or receive. On a 10,000 USDT position, +0.01% is 1 USDT per interval and 3 USDT a day over 3 intervals, while at −0.02% a long receives 2 USDT per interval instead.
Positive and negative rates: who pays whom
The direction of funding depends on two things: the sign of the rate and your side. At a positive rate longs pay and shorts receive; at a negative rate shorts pay and longs receive. Write the side as a factor (+1 for a long, −1 for a short) and multiply: a positive result is a payment, a negative one a receipt.
The table shows the payment per interval on a 10,000 USDT position: the higher the rate, the larger the amount the same position pays or receives at each settlement.
| Rate | Long | Short |
|---|---|---|
| +0.03% | pays 3 USDT | receives 3 USDT |
| +0.01% | pays 1 USDT | receives 1 USDT |
| −0.005% | receives 0.50 USDT | pays 0.50 USDT |
| −0.02% | receives 2 USDT | pays 2 USDT |
How often it settles
Binance's default is a settlement every 8 hours, at 00:00, 08:00 and 16:00 UTC; OKX's 8-hour contracts settle at 08:00, 16:00 and 24:00 Hong Kong time, which is 00:00, 08:00 and 16:00 UTC, and some contracts settle every 1, 2 or 4 hours instead. In extreme markets an exchange may change a contract's settlement frequency.
Only positions open at the settlement pay or receive that interval's funding; closing beforehand avoids it. Binance adds that the actual charge can be about 15 seconds off, so a position opened at 08:00:05 may still be counted.
How the rate is set: interest plus premium
Binance's published formula takes the average premium index over the interval and adds the difference between the interest rate and that premium, capped at ±0.05%. The premium index measures how far the contract trades above or below the spot index; the interest component is fixed at 0.01% per 8 hours for most contracts.
So whenever the premium index is between −0.04% and 0.06%, the rate comes out at exactly 0.01%. That is why so many contracts sit at 0.01% for long stretches in quiet markets: it is not a coincidence but the design of the formula. OKX also bases its rate on the gap between contract and index; its documentation has the details.
Cost of holding: count intervals, not days
Funding is exchanged per interval, so the cost of holding depends on how many settlements a position crosses, not how many days it is held. At three a day, seven days is about 21 intervals and thirty days about 90; a 10,000 USDT long at +0.01% pays 21 USDT and 90 USDT respectively.
Annualizing the rate gives a quick sense of how expensive holding is: +0.01% × 3 intervals a day × 365 days is about 10.95%. But an annual figure assumes the rate never changes, while in practice it is set afresh every interval, so treat it only as a reading of the moment.
Predicted rates and the rate actually charged
The rate shown on a trading screen is the predicted rate for the current interval so far, and it moves until settlement; the rate fixed at the settlement is what is actually paid or received. Multiplying a predicted rate over many intervals is a scenario, not a quote.
DZPTO's live funding page updates the predicted rate for the current interval from Binance's and OKX's official public data every 15 minutes and converts it into what a 10,000 USDT long pays per interval; when the two exchanges' data are from different times, it does not compare them.
Is the funding rate a market signal?
A rate that stays high shows more traders willing to pay to hold longs — a crowded market — but it does not mean the price must fall next; crowded trends can last a long time.
Holding a one-sided position just to collect funding carries far more price risk than income: a 10,000 USDT long at −0.02% receives 2 USDT per interval, which a 0.02% price fall wipes out. Earning funding as income means hedging the price risk away.
Where to check current and past rates
Binance shows the current rate and a countdown above the chart on its futures screen, and lists real-time and historical rates under [Data] → [Futures Data]; OKX shows the current rate and next settlement on each contract page.
To turn a rate into an amount, enter the position and number of intervals in the funding cost calculator; to compare both exchanges right now, use the live funding rates page.
Official sources
The rate formula, settlement times and the 15-second deviation come from Binance's funding documentation; OKX's settlement times, the shorter intervals on some contracts and the fact that the exchange takes no funding come from OKX's FAQ. The interest rate and caps in the formula can change, so the exchanges' latest documentation applies. Recorded 2026-10-07.
- Binance: Introduction to Binance Futures Funding Rates
- OKX: Perpetual Futures Funding Fee FAQ
- OKX: Perpetual Futures Guide
Keep reading
Frequently asked questions
Is a 0.01% funding rate high?
Not especially. Under Binance's published formula, the rate equals the 0.01%-per-8-hours interest component whenever the premium is small, so it is the everyday level on many contracts; a 10,000 USDT position pays about 1 USDT per interval.
Can I avoid funding by closing before the settlement?
Yes, for that interval — but closing and reopening both cost fees. At a 0.05% taker fee a single close costs 5 USDT, usually more than one interval's funding.
Why do Binance and OKX show different rates?
Their order books and price gaps differ, so their premiums differ. Compare rates from the same time; two rates read hours apart cannot meaningfully be ranked.
Does a negative rate mean the price will fall?
No. A negative rate shows that shorts are currently crowded and the contract trades below spot. It describes positioning now, not a forecast of price.
Is funding taken from my margin?
It goes straight through the account: deducted when you pay and credited when you receive. A payment reduces the margin available, which can move the liquidation price slightly.