On BitMEX, funding payments occur periodically and only affect positions that are open at the exact funding timestamp. When the funding rate is positive, long positions pay funding and short positions receive it. When the funding rate is negative, short positions pay and long positions receive. Positions opened and closed within a funding period are not affected.
How Does the Funding Rate Determine Payment Direction?
Funding payments on BitMEX perpetual contracts are determined by two factors: your position direction (long or short) and the funding rate at the time of payment.
When the funding rate is positive: - Long positions pay funding - Short positions receive funding
When the funding rate is negative: - Short positions pay funding - Long positions receive funding
A positive funding rate means the perpetual contract is trading above the spot index price. Longs pay shorts to incentivise selling pressure and bring the contract price back toward spot. A negative funding rate means the contract is trading below spot. Shorts pay longs to incentivise buying pressure.
The predicted funding rate is calculated and published in advance, allowing traders to anticipate payment direction before the timestamp arrives.
Understanding the timing rules for funding is equally important.
When do funding payments occur and which positions are affected?
Funding payments occur periodically on BitMEX perpetual contracts. Only positions that are open at the exact time of the funding payment are affected. Two critical timing rules apply:
Open positions only
A position must be open at the precise funding timestamp to pay or receive funding. If you close your position before the funding timestamp, you neither pay nor receive anything. If you open a position after the timestamp passes, you are unaffected until the next funding event.
No proportionality
The duration a position has been open does not affect the funding amount. A position opened one minute before the funding timestamp is treated identically to a position held for seven hours. There is no pro-rata calculation. The full funding rate is applied regardless of hold time.
This means a trader can open a position moments before funding, receive the full payment, and close immediately after. Conversely, a trader holding for most of the interval who closes just before the timestamp pays nothing.
For detailed information on how the funding rate is calculated, refer to the Funding Rate Calculation guide.
How can I use funding payment timing to my advantage?
Understanding the funding schedule creates tactical opportunities:
- Avoid paying: If you are on the paying side (e.g., long during positive funding), consider closing before the funding timestamp and reopening after.
- Earn funding: If the funding rate strongly favours your position direction, holding through the timestamp earns you the full payment.
- Arbitrage funding: Some traders open positions specifically to capture high funding rates, hedging their exposure on another exchange or contract.
How do I know the direction of the next funding payment?
The current funding rate and the predicted rate for the next interval are displayed on the Contract Specification page and the Contract Details widget on the BitMEX trading interface.