Who this is for — Anyone holding overnight or on perpetuals/crypto. You can pay to stay in market even when price is flat.
Funding cost (carry/financing cost) is periodic payment between longs and shorts on instruments like perpetual swaps — extends funding (Bronze) with total cost and venue comparison lens in Gold execution module.
In plain terms — Position «rent» — every 8h you may pay or receive, even if the chart doesn't move.
Operational control
| Step | Action |
|---|---|
| Pre-trade | Expected funding vs trade edge |
| Break-even | Target must cover cumulative carry |
| Venue | Compare rates across exchanges |
| Timing | Avoid hold through extreme funding |
| Report | Monthly carry cost per strategy |
Positive funding for your direction = cost; negative = rebate (watch counterparty risk).
Integration
- Include in net expectancy and hold backtests
- Pair with fee optimization — total cost
- Shorten holding if funding penalizes vs edge
Typical mistake — Backtest without funding — live marginal, paper ok.
Example — Long perpetual, funding +0.03%/8h. Five days contain 15 intervals: carry −0.45%. A +0.8% price move → net +0.35% before other costs.
Summary card
- Formula: notional × rate × periods.
- Check: pre-open + rate spike alert.
- Action: reduce size or close pre-funding.
Gold path — Execution module. Index: Gold path.