📌 Understanding Funding Fee in Binance Futures (UTC 00:00) Funding fee is one of the most important concepts in Binance Futures trading, yet many traders misunderstand how it works. In this article, we’ll break it down simply. 1️⃣ What is Funding Fee? The funding fee is a periodic payment exchanged between long and short traders in perpetual futures contracts. 👉 Binance does not keep this fee. 👉 It is paid from traders to traders. The main purpose of the funding fee is to keep the futures price close to the spot price. 2️⃣ When is the Funding Fee Charged? (UTC 00:00 – Important) Funding fees are charged at specific times only, not continuously. 📌 On Binance, funding fees are charged every 8 hours: 00:00 UTC 08:00 UTC 16:00 UTC ❗ Very Important: If you hold an open position exactly at the funding time, you will pay or receive the funding fee. If you close your position before that time, no funding fee will be charged. Funding fees are NOT deducted at any other time. 3️⃣ Positive vs Negative Funding Rate 🔹 When Funding Rate is POSITIVE: Long traders pay Short traders receive This usually means: 👉 More traders are opening long positions, so longs pay shorts to balance the market. 🔹 When Funding Rate is NEGATIVE: Short traders pay Long traders receive This usually means: 👉 More traders are opening short positions, so shorts pay longs. 4️⃣ How to Calculate Funding Fee 📐 Funding Fee Formula: Funding Fee = Position Size × Funding Rate 🔍 Example: Position Size: $1,000 Funding Rate: 0.01% (0.0001) Funding Fee = 1,000 × 0.0001 = $0.10 ✔️ If you are on the paying side, $0.10 will be deducted ✔️ If you are on the receiving side, $0.10 will be added to your balance 🧠 Key Takeaways Funding fee keeps futures prices aligned with spot pricesCharged only at funding times (UTC 00:00, 08:00, 16:00)Paid between traders, not to BinancePositive rate → Long pays, Short receivesNegative rate → Short pays, Long receives 📢 Smart traders always check the funding rate before holding positions overnight. If you found this helpful, feel free to share it on Binance Square 🚀 #BİNANCE #Square #funding #fundingfee #fundingfees