Funding Rate vs Round-Trip Cost

Quick comparison to help you distinguish these two crypto terms.

Funding Rate
intermediate
risk

A periodic payment exchanged between traders holding long and short positions in perpetual futures contracts, designed to keep the futures price aligned with the underlying cryptocurrency's spot price.

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Round-Trip Cost
intermediate
strategy

The total trading cost incurred when entering and exiting a position, combining all fees and spread costs from both the opening and closing transactions of a complete trade.

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