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Understanding Futures Funding Rates in Crypto
Funding rates keep perpetual futures aligned with spot—learn how they affect long and short positions.
Perpetual futures do not expire. Funding payments periodically transfer value between longs and shorts so contract prices stay near spot.
Positive vs negative funding
When funding is positive, longs typically pay shorts. When negative, shorts pay longs. Crowded sides often pay more.
Why traders care
Holding a leveraged position for days can cost (or earn) meaningful funding. A trade that looks profitable on price alone may shrink after funding.
- Check funding before swinging futures
- High funding can signal crowded positioning
- Short holds reduce funding impact
Practical approach
On KuraCoin futures, review funding information for your pair and include it in your trade plan—especially for multi-day positions.
Final thoughts
Price is not the only PnL driver in perpetuals. Funding is part of the real cost of being right.
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