What is Funding Rate?

Indian market context (NSE)

Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Funding Rate shows up on Indian index, equity, and futures books — update to live quotes in your journal.

Nifty 50 perspective

Nifty at 24,300: weekly/monthly option chains centre on round strikes (24,000 / 24,500). Funding Rate on ATM Nifty options shifts quickly into expiry — India VIX and event risk (RBI, budget) reprice premiums independent of spot.

Bank Nifty futures perspective

Bank Nifty futures at 55,000: hedging with options or trading funding rate on Bank Nifty weekly contracts — theta and gamma rise sharply into Thursday expiry; futures leg has no time decay but carries overnight gap risk.

How to validate

• Minimum sample: 30 closed trades on one strategy tag before trusting Funding Rate.
• Check for one outlier week inflating Funding Rate — export largest winners and losers.
• Recompute Funding Rate after including brokerage, STT, and slippage on F&O tags.
• Compare Funding Rate on the same date range as profit factor and max drawdown.

How to track in TradeLyser

• Open Strategy Board or analytics → filter by strategy tag and review period.
• Locate the widget or column reporting Funding Rate (or export trades to compute manually).
• Store snapshot values in weekly review: Funding Rate, profit factor, drawdown, trade count.
• If Funding Rate is custom, add a spreadsheet column fed from TradeLyser CSV export.

Best practices

• Publish Funding Rate per strategy, not only at account level.
• Use the same calculation window (weekly vs monthly) year-round.
• Pair Funding Rate with sample size in every review slide or note.
• Reconcile Funding Rate with broker statements before tax filing.

Common pitfalls

• Changing rules after fewer than 20 trades because Funding Rate moved slightly.
• Mixing intraday and positional tags when computing Funding Rate.
• Ignoring costs so Funding Rate looks better than banked P&L.
• Letting one outlier trade dominate the Funding Rate reading.

How to use this in TradeLyser

If trading global perps, log funding at entry; Nifty futures use different carry via basis.