How often do funding rates change?

Funding rates in cryptocurrency futures markets typically change every 8 hours on most major exchanges like Binance and Bybit, though some platforms may use different intervals. These rates are calculated based on the difference between perpetual futures prices and spot market prices. When long positions are dominant, funding rates become positive, meaning traders holding long positions pay shorts. When shorts dominate, rates turn negative. Rates can change dramatically during volatile market conditions. Traders should monitor funding rates regularly because high rates can erode profits through continuous payments, while negative rates can provide income opportunities. Understanding funding rates is crucial for managing leverage trading costs effectively.