07.  Bitget Futures Funding Fees

 

Funding fee is the operating system of Bitget futures markets.

The setting of the funding fee aims to ensure that the futures trading price closely follows the spot trading price (underlying reference price), through the every 8h exchange of funding rates between the long and short positions.

 

 

Description of Funding Fee

 

Funding fees are generated every 8 hours, which are 07:00, 15:00, 23:00 (UTC+08:00), you only need to pay or charge funds if you hold a position at the time of these three capital timestamps.

*During the funding fee collection period, there may be delays in calculation. For example, you may still be charged or paid if you open or close your positions at 07:00:05

 

When the funding fee is collected, it will be deducted from the fixed margin of the user's position, at most until the user's margin rate is equal to the maintenance margin rate and a certain percentage of the remaining amount, and the excess will not be charged.

 

1. Log in to Bitget ➡︎ [Futures] ➡︎ USDT-M/USDC-M/Coin-M Futures

 

Log in to Bitget and click the futures contract. 

 

 

 

 

2. Go to [Futures Info] ➡︎ [Funding Rate]

 

Go to the [Futures Info] drop down, and click [Funding Rate] to see the funding rate history for the selected trading pairs.

 

 

 

 

3. Select Trading Pair

 

Select trading pairs to see the funding rate history shown as below. It is also possible to choose different futures contracts at this page. You will see the list of funding rate history (calculated every 8h) 08:00/16:00/00:00 

 

 

The essential purpose of the funding fee is to adjust the price gap between spot and futures. Funding fees are exchanged directly between the two positions(long/short) and in most cases,  long position holders pay the funding fee to short position holders.

 

Funding fees(0.02~0.05%) are generated every 8 hours on Bitget. It is possible to create a a steady profit by using the funding fee trading strategy. If you adjust your position once a day, you can also take profit with compound interest.

 

In order to reduce the funding fee, traders need to hedge against market price fluctuations after aligning the ratio of the spot and futures 1x short of the specified coin.

For instance, if you hold 1 BTC in spot and open a short position BTC/USDT perpetual contract by 1x, you can receive a steady funding fee every 8 hours without being affected by the volatility of the market. A more simple way is to short 1x on an inverse contract such as BTC/USD to freeze your funds but still receive funding fees from long position holders.