Funding arbitrage
Real-time funding-rate spread across exchanges: where to go long, where to go short, and whether the spread converges over time.
About this section
This section shows the difference in funding rates for the same coin across exchanges. When longs pay shorts on one venue and the opposite happens on another, that gap can be harvested: open opposite positions of equal size and collect payment on both sides.
The scheme is called delta-neutral: the combined exposure to the coin price is close to zero, so market direction barely matters. The return comes from the rate difference itself, settled every eight hours, not from price movement.
The risks are real but they are not directional. The rate can change before the next settlement, fees and slippage eat part of the gap, and funds end up locked on two exchanges at once. On thin pairs the difference often disappears before it pays for the entry.
Frequently asked questions
Open opposite positions of equal size on two venues so that you receive payment where the rate is favourable and pay less where it is not. The return comes from the gap, not from price movement.
A set of trades whose combined dependence on the asset price is close to zero. A long on one exchange is offset by a short on another, so a rise or fall barely affects the outcome.
The rate changes before settlement, fees and slippage reduce the gap, funds are locked on two venues, and a sharp move on one of them can leave you short of margin.
The rate is calculated from position skew on a specific venue. Different exchanges have a different mix of participants, so the skew differs too.