Bybit How to view the funding rate? Bybit Exchange Fund Rate Arbitrage Teaching

Bybit Detailed explanation of funding rates: Arbitrage strategies and risk warnings

This article will conduct in-depth discussion on the fund rate mechanism of Bybit perpetual contracts, including its calculation method, influencing factors, and how to use the fund rate for arbitrage.

What is the capital rate?

The funding rate of Bybit perpetual contract is a mechanism used to balance the difference between contract prices and spot prices. When the positions of long and short parties are seriously unbalanced, the party with a larger position needs to pay the capital rate to the other party. Simply put:

• Positive capital rate: If long parties hold too much positions, they need to pay fees to the short parties.
• Negative capital rate: Short sellers have too many positions and need to pay fees to long sellers.

This is like a kind of "interest", guiding the market to restore balance.

Fund rate settlement frequency:

Bybit funding rates are usually settled every 8 hours, which means that the funding rates are paid (or charged) three times a day when holding a contract. However, when the market fluctuates violently, the settlement frequency may be adjusted to 4 hours or 2 hours.

How to view funding rates:

Bybit contract trading page will directly display the current funding rate.

Example of fund rate:

• Positive fund rate: If the BTC fund rate is 0.0051% and the settlement time is 05:08:00, then you need to pay 10,000 USDT to go long by 10,000 * 0.0051% = 0.51 USDT.
• Negative fund rate: If the SOL fund rate is -0.0114% and the settlement time is 05:09:00, then shorting USDT of 10,000 will require payment of 10,000 * 0.0114% = 1.14 USDT (pay to long parties).

Factors and calculation formulas that affect capital rates:

Bybit funding rates are affected by a variety of factors, including borrowing rates for denominated currencies and base currencies, as well as premiums for contracts and spot prices. The calculation formula is relatively complex, but the core lies in balancing market supply and demand. Bybit will also adjust the upper and lower limits of the capital fee rate according to market conditions.

Fund rate arbitrage strategy:

• Futures and Spot Arbitrage: Go long in the spot market and short the same currency in the futures market to earn the difference in capital rate.
• Cross-exchange arbitrage: Use different fund rates on different exchanges to make arbitrage.

The key to improving arbitrage returns: Reducing transaction fees is a key factor in increasing arbitrage returns.

FAQ:

• Where is the deduction for the capital fee rate? Deduct it directly from the Bybit unified trading account.
• How to check historical funding rates? Check through Bybit official website.
• How to check the current funding rate? View on the contract trading page.

Bybit Exchange Introduction:

Founded in 2018, Bybit is one of the world's leading cryptocurrency exchanges, providing a variety of trading products and services.

Risk warning: There are risks in fund rate arbitrage, so you need to operate with caution and do a good job in risk management. When the market fluctuates violently, the arbitrage strategy may fail and even lead to losses. It is recommended to conduct relevant operations after fully understanding the market and risks.

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