This website uses cookies to ensure you get the best experience on our website

Cryptocurrency trading: What is the Funding/Financing Fee in Trading?


In crypto trading, funding rates/financing fees refer to periodic payments traders pay to go long or short. 

The rate paid depends on the difference between the perpetual contract prices versus those offered by exchanges. 

Often, the objective of financing fees is to keep the index price as close as possible to the spot rate. 

As such, funding fees can be a gauge to measure market sentiment among leverage crypto traders and the general direction of their bet.

A higher funding/financing fee could point to a peaking market, a likelihood that crypto prices will likely fall. 

On the other hand, negative funding may suggest undervaluation and possibilities of correction higher.


For more interesting tips and facts visit our Education Centre.


Have Questions? 

We're available 24/7 to help you. You can email us, or send us a message on WhatsApp, Telegram or Messenger!

Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.
  • Copyright Excel Innovations Ltd (CryptoAltum) 2020