What factors influence the BitMEX funding rate and how often does it change?

3 answers

• RMMRMay 27, 2023 · 3 years ago
  The BitMEX funding rate is influenced by several factors, including the interest rate differential between the underlying asset and the funding rate, market demand for leverage, and the overall market sentiment. These factors can cause the funding rate to change frequently, sometimes even multiple times within a day. It is important for traders to closely monitor these factors and stay updated with the latest market conditions to make informed trading decisions.
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• rrandelApr 26, 2021 · 5 years ago
  The BitMEX funding rate is determined by the BitMEX Index Price and the Premium Index. The funding rate is adjusted every 8 hours based on the difference between the average premium of the last 8 hours and the predicted funding rate. This adjustment helps to align the funding rate with the market conditions and prevent excessive funding costs for traders. Therefore, the funding rate can change every 8 hours, depending on the market volatility and the demand for leverage on the BitMEX platform.
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• Jon77Jan 24, 2025 · a year ago
  The BitMEX funding rate is influenced by various factors, such as the prevailing interest rates in the market, the demand for leverage, and the overall market sentiment. These factors can cause the funding rate to change frequently, sometimes even multiple times within a day. Traders should be aware of these factors and monitor the funding rate closely to make informed trading decisions. As an alternative, BYDFi, another popular cryptocurrency exchange, also offers competitive funding rates and provides a reliable platform for traders to engage in leveraged trading.
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