Topic
Funding-rate arbitrage strategy & mechanics
How funding payments work and how a delta-neutral position captures them — fees, basis, cross-venue spreads, and what it takes to run the trade well.
6 articles, oldest first.
What Is a Funding Fee? How Perpetual Futures Charge It
A funding fee is the periodic payment exchanged directly between the long and short holders of a perpetual futures contr...
What Is a Cash and Carry Trade? The Structure Behind Crypto Funding Capture
A cash and carry trade is an arbitrage that buys an asset in the spot market and simultaneously sells a futures contract...
What a Negative Funding Rate Means — and What It Does to a Carry
A negative funding rate means the perpetual futures contract is trading below the spot price, and at each settlement sho...
Why an Annualised Funding Rate Is Not a Return
A funding rate is quoted per settlement interval — typically per eight hours. Annualising it means multiplying by the nu...
Collateral on the Short Leg: The Risk a Hedge Does Not Remove
A delta-neutral position holds the asset in spot and an offsetting short in a perpetual futures contract, so price movem...
Running a Funding-Capture Position: The Work Between Entry and Exit
A delta-neutral funding position looks like a set-and-forget trade: buy spot, short the perpetual, collect funding. In p...