Dynamic testing includes both functional and non-functional testing (Load/Stress/Performance testing). Dynamic testing include unit Integration system and acceptance testing.
Dynamic testing refers to the testing of the dynamic behavior of code. It examines the system's response to variables that are not constant and change with time. In order to perform dynamic testing the software must actually be compiled and run. It involves giving input values and verifying expected outputs. Unit Tests Integration Tests System Tests Functional Tests and Acceptance Tests are few dynamic testing methodologies. So yes Functional Testing is a form of dynamic testing.