Funding Arbitrage
In the 🏦 Futures Arbitrage section, you’ll find setups for futures trading in several formats.
The essence of earning is simple: buy low, sell high. For shorting, you borrow funds from the exchange via margin trading, eliminating the need to transfer coins to another exchange. Instead, you can instantly sell and wait for the price to converge. All you need is USD on two exchanges.
Arbitrage Formats:
📊📊 FUTURES-FUTURES: Two centralized exchanges with futures. Long on one futures contract, short on another. 🏦📊 SPOT-FUTURES: Buy on the spot market, short on futures. This can be done on either two separate exchanges or within a single exchange. 📊🏦 FUTURES-SPOT: Long on futures, short via margin trading on the spot market. 💰📊 DEX-FUTURES: Buy on a decentralized exchange (DEX), short on futures. 🧬 FUNDING: Long where the funding rate is lower, short where it’s higher.
Key Considerations:
Are Leverages Disabled? A guide on leverage is coming soon. For now, ensure leverage is set to 1x in all cases.
Are Deposits/Withdrawals Enabled? Check how long the spread holds. If the spread persists for a long time and networks are down, you may have to wait a while for prices to converge.
Funding Rates: Monitor the rate, as fees or payouts occur at regular intervals. Depending on the rate, you could either earn interest or pay it.
How Does Funding Work?
Lower Rate: Go long.
Higher Rate: Go short.
Negative Rate: Long positions earn interest.
Positive Rate: Short positions earn interest.
In funding arbitrage, you profit from the difference in funding rates. One position might incur a fee, while the other earns interest. The difference between them is your profit.
How to Earn Consistently?
💵 How to Earn $10 to $100 every 4 hours with proper setups. 💵 Catch opportunities to make 10% returns within 5–10 minutes with almost no risk.
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