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How Does the Funding Rate Create Arbitrage Opportunities?

The funding rate creates arbitrage opportunities when the perpetual contract price deviates significantly from the spot price. An arbitrageur can simultaneously take a long position on the perpetual and a short position on the spot (or vice versa) and profit from two sources: the convergence of the prices and the periodic funding payment they receive.

Can a Trader Profit Solely from the Funding Rate Mechanism?
How Does the Funding Rate in Perpetual Futures Contracts Create Arbitrage Opportunities?
What Is the Risk If the Final Settlement Price Deviates Significantly from the Spot Price?
How Does the ‘Funding Rate’ Mechanism Ensure the Perpetual Contract Price Tracks the Spot Price?