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 price fluctuations, and earn income through funding rates. We have compiled top assets showing profit opportunities through real-time data with high funding rates. [Editor's Note]
A funding rate arbitrage strategy centered on cryptocurrency SKL (SKALE) is gaining attention. According to DataMaxiPlus as of 12:10 on August 14th, the combination showing the highest profit opportunity based on $10,000 is a strategy using Bybit futures and Huobi spot, with an annualized return rate of 10.09%.
This strategy involves holding a long SKL futures position on Bybit and taking a margin short position on Huobi. This is expected to generate approximately $50,366 in funding rate income annually. Similar strategies using SKL (Bybit futures vs Bitget spot), and SKL (Bybit futures vs gate.io spot) show identical return rates, highlighting the broad applicability of SKL arbitrage opportunities.
The SKL (gate.io futures vs Bitget spot) strategy offers an annual return rate of 9.28%, potentially generating around $46,312 annually, with the SKL (gate.io futures vs Huobi spot) strategy recording similar figures.
Funding rate arbitrage is a strategy that seeks profits through hedging by maintaining a long position in futures markets and a margin short position in spot markets. When funding rates are negative, futures holders receive funding rates while reducing price volatility risks through spot margin shorts.
However, margin trading involves costs such as interest and fees, so calculations must reflect actual net returns. Especially in recent periods with deeply negative funding rates, short-term strategy execution can enable easy profit realization.
Current Highest and Lowest Funding Rate Assets
High funding rate percentages indicate concentrated long positions, while low or negative rates suggest short position dominance.
๐ผ Top 5 Highest Funding Rates
โฒMEMEFI/USDT(HTX) 0.00275(Annual 6.03%)
โฒAIDOGE/USDT(HTX) 0.00380(Annual 4.16%)
โฒBSW/USDT(Bitget) 0.00175(Annual 3.83%)
โฒIDEX/USDT(Gate.io) 0.00145(Annual 3.18%)
โฒSNT/USDT(MEXC) 0.00035(Annual 3.07%)
๐ฝ Bottom 5 Lowest Funding Rates
โฒMEMEFI/USDT(HTX) โ0.00138
โฒAIDOGE/USDT(HTX) 0.00030 or below stagnation period
โฒBSW/USDT(Bitget) 0.00030
โฒIDEX/USDT(Gate.io) โ0.0207(As of August 4th)
โฒSNT/USDT(MEXC) โ0.00582(As of August 2nd)
When funding rates are high or positive, long position demand is high, making futures prices relatively more expensive than spot prices, requiring longs to pay shorts funding rates. Investors can secure funding rate income by implementing spot purchase and futures short-selling strategies.
Conversely, when funding rates are low or negative, short position demand increases, causing futures prices to be lower than spot prices, requiring shorts to pay longs funding rates. Investors can maximize funding rate arbitrage by utilizing spot selling and futures long strategies.
Funding rate arbitrage is a strategy that can generate 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.]
Get news in real-time...Go to TokenPost Telegram
<Copyright โ TokenPost, Unauthorized Reproduction and Redistribution Prohibited>
