Perpetual futures prices differ from spot prices depending on market 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 spot and futures prices. 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 income through funding rates. We have compiled top assets showing profit opportunities through real-time high funding rate data. [Editor's Note]
As of June 14th at 12:10 PM, according to DataMaxiPlus, ANIME is shown to record the highest funding rate return based on a $10,000 standard.
The highest profit opportunity is a strategy of taking a margin short on OKX and a futures long position on Bybit. This combination generates a -0.572% funding rate, with an annualized return of 125.2%, and an expected annual funding rate income of approximately $125,191.
Similarly, combinations like spot short on Binance with Bybit futures long, or strategies within Bybit between spot and futures, yield identical returns.
A strategy of going long on ANIME/USDT futures on Bitget and shorting spot on Binance is also noteworthy. With a -1.04% funding rate, an annual income of about $113,757 is expected. Additionally, combining Bitget's futures long option with a spot short on OKX or Bybit shows similar results.
For HTX (Huobi) futures long combined with Binance or OKX spot short, a -0.9749% funding rate is applied, with annual returns analyzed at approximately $106,625.
Lastly, the MEXC futures long and Binance spot short combination provides an annualized arbitrage opportunity of about $106,045 with a -0.9696% funding rate.
These strategies maintain a long position in futures markets while constructing a hedge through margin short positions in spot markets. When funding rates are negative, futures long positions can expect funding income, and margin shorts can lower price volatility risks.
However, additional costs like interest and fees from margin trading must be considered, and actual returns should be analyzed accordingly. In recent periods with deeply negative funding rates maintained short-term, profit realization is possible with brief holding periods, characterizing a low entry barrier for strategy implementation.
Current Highest and Lowest Funding Rate Assets
๐ผ Top 5 Highest Funding Rates
โฒKOMA on Gate.io (4.07%)
โฒKOMA on MEXC (1.85%)
โฒKOMA on Binance (1.84%)
โฒACT on Bitget (1.33%)
โฒALCH on Bitget (0.85%)
๐ฝ Bottom 5 Funding Rates
โฒKOMA on Gate.io (-0.000872)
โฒACT on Bitget
โฒALCH on Bitget
โฒKOMA โ Funding Rate Variations Across Multiple Exchanges
โฒPotential Undervalued Assets Exist, Monitoring Total 3,000+ Assets
Experts analyze that high funding rate assets reflect traders' long position concentration, while low or negative funding rates indicate short position preferences.
When funding rates are high or positive, long position demand is high, making futures prices relatively more expensive than spot prices, requiring long positions to pay funding rates to short positions. Investors can secure funding rate income by implementing spot purchase and futures short (short selling) strategies.
Conversely, when funding rates are low or negative, short position demand is high, causing futures prices to be lower than spot prices, requiring short positions to pay funding rates to long positions. Investors can maximize funding rate arbitrage by utilizing spot selling and futures long strategies.
Funding rate arbitrage is a strategy targeting 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 exchange-specific funding rate differences 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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