Funding Rate Arbitrage

What is Funding Rate Arbitrage?

Funding rate arbitrage is a market-neutral trading strategy where you open opposite positions in the spot market and perpetual futures market of the same asset. The objective is to capture the funding payments made by traders holding the opposite side, while staying hedged against price fluctuations.

Example: If Bitcoin perpetual contracts have a +0.01% funding rate every 8 hours, long traders pay shorts. By going short on perpetuals and long on spot, you collect the funding fees while keeping your portfolio delta-neutral.

Key Insights

• Neutral exposure: You earn funding without betting on price direction.
• Risk factors: Exchange fees, slippage, withdrawal costs, and funding rate changes can reduce profitability.
• When it works best: During periods of strong market sentiment, when funding rates become very positive (bullish) or very negative (bearish).

Funding Rate Arbitrage Opportunities

Below you can explore opportunities across multiple exchanges. Adjust the position size, strategy filters, and collect cycle to tailor the scanner to your needs.