A negative funding rate means short positions pay long positions under the usual signed-rate convention. It describes a payment direction. It does not establish that most traders are short or predict the next price move.
Use the live tools
Read the payment direction
The rate applies to a position under the contract’s settlement rules. A long receives funding when the settled rate is negative; a short pays it.
The sign tells you who pays
The latest price gap alone does not determine the final funding rate.
Check whether the displayed number is an estimate for a future settlement or a rate that has already settled. Those records answer different questions.
The Hyperliquid funding specification uses a premium component, interest, and a clamp. The latest perpetual-to-spot price gap alone does not determine the final payment.
Calculate the cost over a stated interval
Assume a constant $10,000 funding notional and a rate of −0.1% at each of three settlements. The short pays $10 each time, or $30 total. That is 0.3% of notional, not 0.9%.
| Assumed settlement | Rate | Short pays | Long receives |
|---|---|---|---|
| First | −0.1% | $10 | $10 |
| Second | −0.1% | $10 | $10 |
| Third | −0.1% | $10 | $10 |
| Total | −0.3% | $30 | $30 |
If these are eight-hour settlements, three span one day. Do not apply that schedule to every market. Hyperliquid and dYdX document hourly payments.
Compare payments over the same window
0.00125% × 8 = 0.01%
The second illustration uses smaller assumed rates to show interval conversion. It is not the rate used in the $30 example.
Keep funding separate from price profit
Suppose the long receives $30 but loses $300 from the contract price movement. Its result is −$270 before other costs. Receiving funding does not make a directional position profitable.
The payment uses notional value under the venue’s price-basis rules. Margin determines how much collateral supports that position. A lower margin does not create a larger payment on an unchanged position.
Do not infer a trading signal from the sign
Each open derivative contract has a long and a short. A negative rate does not count how many people hold each direction. Accounts can hold different quantities, and a participant can hedge elsewhere.
The open interest guide explains contract counts and dollar conversion. A funding chart can describe observed rates, but it cannot prove a future squeeze or reversal.
Review an existing position
Record the settlement interval, the notional basis, and the rate paid or received. Compare the resulting holding cost with entry and exit costs.
For a short, continued negative funding adds a cost. For a long, a rate reversal can remove the receipt or turn it into a payment. Rates can change before a planned exit.
The funding observations show covered markets and timestamps. The funding arbitrage guide explains why two offsetting positions retain basis, margin, and venue risk.
Sources and limits
Primary references: Hyperliquid funding and dYdX funding, reviewed September 13, 2026. Every payment example here uses assumed rates and unchanged notional.
Is negative funding bullish or bearish?
It states the payment direction.
It does not independently establish a directional forecast or the number of traders on either side.
How much does −0.1% funding cost per day?
Three payments at −0.1% total 0.3% of unchanged notional.
That is $30 on $10,000 if all three settlements apply. Check the actual schedule.
Does a long automatically profit during negative funding?
No.
The long may receive a funding payment, but price losses, fees, and other costs can exceed that receipt.