Perpetual futures have price differences depending on investment sentiment. The futures market adjusts these price differences through the Funding Rate. When futures prices are high, longs pay shorts, and when low, shorts pay longs to balance the prices between spot and futures markets. By utilizing this structure, an investment strategy exists where one can purchase spot assets, take a short position in futures to hedge asset price fluctuations, and earn profits through funding rates. We have compiled top assets showing profit opportunities through real-time data with high funding rates. [Editor's Note]
As of April 23rd at 9:30 PM, according to DataMaxiPlus, NULS was found to be the most profitable asset based on funding rates.
This strategy involves taking a short position in gate.io's margin market while maintaining a long position in the same exchange's futures market. In this case, the applicable funding rate is −0.015042, with an annualized return rate of 32.94%. Based on $10,000, the estimated annual income is approximately $164,525.2.
The second-highest profit opportunity is IMX. This strategy can be applied across various exchange combinations. For example, holding IMX in a long position on gate.io futures and constructing a short position on Bitget spot market results in a −0.003601 funding rate. The annualized return rate is 7.89%, with annual income around $39,371.5.
A strategy combining Bybit futures with OKX or Bitget spot markets is also valid. In this case, the funding rate is around −0.00345, with an estimated annual income of approximately $37,737.3 based on $10,000.
This strategy is a delta-neutral approach that maintains a long position in futures markets while hedging price fluctuation risks through margin short positions in spot markets. When negative funding rates are maintained, futures long positions receive funding rates.
However, margin trading incurs interest and fees, so when calculating net profits, one must consider the actual return rate after deducting these costs. Particularly for assets with consistently negative funding rates, like recent cases, profits can be realized even with short holding periods, providing favorable entry conditions.
Key Analysis Points
- NULS offers high-yield strategies within a single gate.io exchange
- IMX allows flexible strategy configurations using gate.io, Bybit futures, and OKX, Bitget, Binance spot markets
- Annual income expectations range from $30,000 to $160,000 based on $10,000
- Fundamentally a delta-neutral structure, but risks like fees, interest, and transfer times must be considered
Current Highest and Lowest Funding Rate Assets
🔼 Top 5 Highest Funding Rates- RIF on MEXC (0.002068)
- RIF on Binance (0.00206753)
- SIREN on Bitget (0.001831)
- SNT on gate.io (0.001517)
- FIO on gate.io (0.001289)
- SNT on gate.io (-0.06102)
- SNT on gate.io (-0.050426)
- SIREN on Bitget (-0.012629)
- RIF on MEXC (-0.019456)
- RIF on Binance (-0.004917)
When funding rates are high or positive, long position demand increases, making futures prices relatively more expensive than spot prices, requiring long positions to pay shorts. Investors can secure funding rate profits by implementing spot purchase and futures short-selling strategies.
Conversely, when funding rates are low or negative, short position demand increases, making futures prices lower than spot prices, requiring short positions to pay longs. Investors can maximize funding rate arbitrage by utilizing spot selling and futures long strategies.
Funding rate arbitrage is a strategy that can seek stable returns regardless of market volatility, usable even when long-term market direction is difficult to predict. However, as funding rates are highly variable based on market participant position ratios, a strategic approach considering funding rate differences between exchanges and capital costs is necessary.
[This article does not provide financial advice, and investment outcomes are the sole responsibility of the investor.]
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