I’m developing a futures trading algorithm. It’s said that Binance calculates the Premium Index every 5 seconds. This Premium Index, in turn, is used to calculate a Funding fee. However, the fee updates every 4 or 8 hours, depending on the symbol. Why does the Premium Index update so frequently instead of every 4-8 hours? Am I overlooking something?
Hi the premium index contains multi data: mark price, index price, etc.
Thanks, I’m aware. So is there any use for the premium index other than its role within the funding fee, which updates only once every 4-8 hours?
@MixMix Some people might want to use the premium index for their own individual use cases (Risk Management, understand the market sentiment, …). So, it’s not necessary only attached to funding fee calculations.