What factors are taken into account when calculating the funding rate on BitMEX?

3 answers

• RonaldMar 05, 2024 · a year ago
  The funding rate on BitMEX is determined by a combination of factors. These factors include the prevailing interest rate, the funding interval, and the difference between the market price and the index price. BitMEX calculates the funding rate every 8 hours based on these factors. The funding rate is used to ensure that the perpetual contracts on BitMEX stay in line with the underlying market. It helps to prevent the price of the contract from deviating too much from the spot price. By taking into account these factors, BitMEX aims to provide a fair and balanced trading environment for its users.
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• sachin sssJan 30, 2022 · 3 years ago
  Calculating the funding rate on BitMEX involves several factors. One of the main factors is the difference between the market price and the index price. This difference is known as the basis. If the basis is positive, long positions pay funding to short positions. If the basis is negative, short positions pay funding to long positions. Another factor is the interest rate. BitMEX uses the prevailing interest rate to calculate the funding rate. Additionally, the funding interval, which is typically 8 hours, is also taken into account. These factors together determine the funding rate on BitMEX.
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• Trí NguyễnSep 28, 2022 · 3 years ago
  When it comes to calculating the funding rate on BitMEX, several factors are considered. These factors include the difference between the market price and the index price, the prevailing interest rate, and the funding interval. BitMEX takes these factors into account to ensure that the funding rate remains fair and balanced for its users. By considering the market conditions and the interest rate, BitMEX aims to maintain a stable funding rate that aligns with the underlying market. This helps to prevent any significant deviations between the contract price and the spot price, providing a reliable trading experience for BitMEX users.
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