Binance Plans to Exclude Disrupted Overnight Data From Stock-Futures Funding Calculations

WHY IT MATTERS

To understand this, think of funding rates like a balancing mechanism. In crypto futures trading, people can bet on whether a price will go up (long) or down (short) without actually owning the asset. Funding rates are small fees paid between these two groups at regular intervals to keep the futures price close to the real market price — similar to how a thermostat adjusts heating to keep a room at the right temperature. If the data feeding into this system is unreliable — for example, because of glitches during low-activity overnight hours — the "thermostat" can malfunction, causing unfair charges to traders. Binance's change is an attempt to fix this by ignoring data that appears to have been distorted, which matters because accurate funding rates are important for fair trading on the platform.