Glossary · Funding and perpetuals
Funding-rate arbitrage
Funding-rate arbitrage, or funding carry, collects the difference in funding between two positions that offset each other's price exposure. The cross-venue version shorts a coin's perpetual on the venue that pays the higher funding and buys it on the venue that pays less.
With equal size on both legs, price moves largely cancel and the position earns the funding spread. It is not risk-free: rates change every interval, entry and exit cost fees and spread, each venue needs its own margin, and a sharp move can liquidate one leg while the other gains.
Try it with live rates in the funding calculator