B2TRADER | Multi-Asset and Multi-Market Trading Platform

Return to B2BROKER main website

B2TRADER

Book a Demo

Return to B2BROKER main website

B2TRADER

Return to B2BROKER main website

B2TRADER

The Funding functionality applies to perpetual futures trading, involving periodic payments exchanged between long and short holders to align the contract price with the underlying asset's market price.

Open Demo Account

Book a Demo

This mechanism ensures that the perpetual futures price remains stable and reflective of the real market conditions.

Funding fees can either be a credit or a charge, depending on the funding rate's direction relative to position holding.

KEY SPECIFICS OF funding

Direct Charge from Balance

The funding amount is directly charged from the trader's available balance.

Margin Impact

Funding can decrease the margin level to the Margin Call (MC) or Stop Out (SO) levels.

Negative Balance Potential

Funding can result in negative balance values, but only within the root asset.

Applicable Positions

Only perpetual positions open at the funding settlement time are considered for calculating the funding size.

Instrument Restriction

Funding can only be set if the instrument type is perpetual futures.

Funding Fee Calculation

Based on position size, lot size, mark price, funding rate, and the rate to the Root Asset Type (RAT).

Dynamic Funding Rate

A rate set in percentages, ranging from -10% to 10%, allowing precise control over funding dynamics between positions.

Regular Settlement Intervals

Funding settlements occur at defined intervals, supporting consistent market price alignment.

Regular Settlement Intervals

Funding settlements occur at defined intervals, supporting consistent market price alignment.

Funding Impacts

The funding operation can either decrease (positive for broker; negative for trader) or increase (negative for broker; positive for trader) the account funds.

Funding Impacts

The funding operation can either decrease (positive for broker; negative for trader) or increase (negative for broker; positive for trader) the account funds.

Root Asset Funding

All funding fees when added are added in the root asset.

Direct Charge from Balance

The funding amount is directly charged from the trader's available balance.

Margin Impact

Funding can decrease the margin level to the Margin Call (MC) or Stop Out (SO) levels.

Negative Balance Potential

Funding can result in negative balance values, but only within the root asset.

Applicable Positions

Only perpetual positions open at the funding settlement time are considered for calculating the funding size.

Instrument Restriction

Funding can only be set if the instrument type is perpetual futures.

Funding Fee Calculation

Based on position size, lot size, mark price, funding rate, and the rate to the Root Asset Type (RAT).

Dynamic Funding Rate

A rate set in percentages, ranging from -10% to 10%, allowing precise control over funding dynamics between positions.

Regular Settlement Intervals

Funding settlements occur at defined intervals, supporting consistent market price alignment.

Funding Impacts

The funding operation can either decrease (positive for broker; negative for trader) or increase (negative for broker; positive for trader) the account funds.

Root Asset Funding

All funding fees when added are added in the root asset.

How it works

Fee Calculation

Settlement Mechanism

Fee Calculation

The calculation considers the current position size in lots, standardized lot size, mid-spread mark price, configured funding rate, and the conversion rate to RAT.

Funding Fee =

Position size × Lot size × Mark price ×
Funding, % × Rate to {RAT}

Book a Demo

Fee Calculation

Settlement Mechanism

Fee Calculation

The calculation considers the current position size in lots, standardized lot size, mid-spread mark price, configured funding rate, and the conversion rate to RAT.

Funding Fee =

Position size × Lot size × Mark price ×
Funding, % × Rate to {RAT}

Book a Demo

Fee Calculation

The calculation considers the current position size in lots, standardized lot size, mid-spread mark price, configured funding rate, and the conversion rate to RAT.

Funding Fee =

Position size × Lot size × Mark price ×
Funding, % × Rate to {RAT}

Settlement Mechanism

Funding fees are credited or debited in RAT based on position holding. If the balance in RAT is insufficient, the fee is settled according to Margin ratio priorities.

Swaps are adjusted if trading days are skipped (e.g., holidays), resulting in multiple overnight fees.

Book a Demo

The basis of PF trading

From individual gains to systemic improvements, funding delivers advantages across the trading ecosystem.

Market Stability

Keeps perpetual futures prices tethered to spot market values, reducing arbitrage opportunities, and enhancing price stability.

Strategic Earnings

Traders can potentially earn from funding fees if positioned optimally according to positive or negative rates.

Market Participation Encouragement

Encourages balanced long and short market participation, mitigating extreme price divergences.

Enhanced Trading Infrastructure

Provides a systematic approach for brokers to manage pricing consistency and trader engagement in futures markets.

FREQUENTLY ASKED QUESTIONS

What is the purpose of the funding fee in perpetual futures?

It aligns the perpetual futures contract price with the spot market price by exchanging periodic payments between longs and shorts, depending on the funding rate.

What is the purpose of the funding fee in perpetual futures?

It aligns the perpetual futures contract price with the spot market price by exchanging periodic payments between longs and shorts, depending on the funding rate.

What is the purpose of the funding fee in perpetual futures?

It aligns the perpetual futures contract price with the spot market price by exchanging periodic payments between longs and shorts, depending on the funding rate.

Direct Charge from Balance

Margin Impact

Negative Balance Potential

Applicable Positions

Instrument Restriction

Funding Fee Calculation

Dynamic Funding Rate

Regular Settlement Intervals

Regular Settlement Intervals

Funding Impacts

Funding Impacts

Root Asset Funding

Direct Charge from Balance

Margin Impact

Negative Balance Potential

Applicable Positions

Instrument Restriction

Funding Fee Calculation

Dynamic Funding Rate

Regular Settlement Intervals

Funding Impacts

Root Asset Funding

What is the purpose of the funding fee in perpetual futures?

What is the purpose of the funding fee in perpetual futures?

What is the purpose of the funding fee in perpetual futures?

How is the funding fee calculated?

How is the funding fee calculated?

How is the funding fee calculated?

What happens if traders' RAT balance is insufficient to cover the funding fee?

What happens if traders' RAT balance is insufficient to cover the funding fee?

What happens if traders' RAT balance is insufficient to cover the funding fee?

How often are funding fees settled?

How often are funding fees settled?

How often are funding fees settled?

Can traders benefit from funding exchanges?

Can traders benefit from funding exchanges?

Can traders benefit from funding exchanges?

What happens if funding causes traders' balance to decrease too much?

What happens if funding causes traders' balance to decrease too much?

What happens if funding causes traders' balance to decrease too much?