A crypto perpetual funding payment is not the same thing as a CFD overnight swap. One is exchanged between long and short holders on a contract schedule; the other is a broker's financing adjustment for holding a leveraged CFD past its cutoff. Compare the actual contract terms, not just two percentages.
Who receives the perpetual funding payment?
Funding on a perpetual contract is a scheduled transfer between position holders. Bybit says a positive funding rate means longs pay shorts, while a negative rate reverses the direction; a trader pays or receives only if holding the position at the applicable funding time. The interval can vary by pair and may change under its stated conditions (Bybit's funding-fee rules).
That makes the funding rate a time-specific contract input, not a fixed nightly borrowing quote. Check the exact symbol's next funding time, rate and settlement rules on the venue. Do not assume another exchange's schedule applies.
What does a CFD overnight swap describe?
A cash CFD swap is a broker-applied adjustment for financing a leveraged position beyond a defined cutoff. IG describes its crypto CFD adjustment as based on an averaged market rate adjusted by IG's administration charge, applied to a position open at its stated cutoff; its page also says rates are reviewed and can change (IG's overnight-funding explanation). Those are IG's product terms, not a universal CFD formula.
A CFD's displayed swap rate therefore does not represent a payment directly exchanged between opposing CFD customers. Nor does the word “funding” make it equivalent to perpetual funding: the contract, calculation base, direction convention and application time can differ.
Compare the charge before comparing the rate
| Check | Perpetual contract | Cash crypto CFD |
|---|---|---|
| What the charge represents | Scheduled transfer between long and short holders | Provider's financing adjustment for a leveraged CFD |
| When it can apply | If the position is held at that contract's funding time | If the position is open at the provider's cutoff |
| What to inspect | Contract-specific interval, current rate, sign and settlement rules | Broker's current long/short rate, cutoff, calculation basis and fees |
The descriptions above are drawn from Bybit's contract rules and IG's crypto-CFD funding terms. Both sources describe their own products. A different venue or broker may use different schedules, terminology or calculation details.
Before comparing two quoted rates, write down the instrument, position direction, rate sign, notional basis, time interval, cutoff timezone and any separate trading charges. Then compare the cash adjustment over the same holding window. A rate quoted per settlement and one expressed on an annualised basis are not comparable until their periods and calculation bases are aligned.
A short holding-cost check
Use this sequence for the exact account and symbol you might analyse:
- Identify whether the instrument is a perpetual contract or a cash CFD. Similar price exposure does not make the contract identical.
- Open the venue's current contract specification or broker's live product details. Record the long and short treatment separately.
- Note when the charge is assessed, including the timezone, and whether holding through that timestamp is enough to incur it.
- Confirm the rate's units and calculation base. Include any commission, spread or other separately listed charge instead of folding it into a guessed “all-in” rate.
- Recheck before a long hold. Provider rates and schedules can change; the examples in their help pages are not a quote for your account today.
For broader execution-cost context, see how to track slippage in a trading journal and how we model trading costs. Neither replaces the current rules for your chosen contract.
Frequently asked
Is perpetual funding always paid by longs?
No. Bybit's rules say a positive rate has longs pay shorts and a negative rate reverses the payment. Check the sign and rules for the specific contract and funding time.
Is a CFD swap always charged once each night?
No universal schedule follows from the label. IG states a cutoff for its product, but another broker or instrument can use different terms. Read the live specification for the account you use.
Can I compare two annual percentages directly?
Only after checking that both use comparable calculation bases and cover the same holding period. Also account for separate fees and the possibility that rates change.
The useful comparison is not “which number is smaller?” It is “what contract applies this charge, on what clock, and to which notional?”
The UK Financial Conduct Authority's October 2026 review also flags overnight CFD charges as an area where firms' levels and application may be inconsistent, and where clients may lack enough information. It is another reason to inspect the provider's own current terms, not assume one broker's schedule is the market standard (FCA review).
Kraken's independent explainer likewise describes payments between the long and short sides and notes that funding intervals vary across regions and platforms (Kraken on perpetual futures).