The same BTC perpetual can pay 0.04% per interval on one exchange and 0.01% on another. Cross-Exchange Funding Arbitrage shorts it where shorts are paid more and holds a long of the same value where longs pay less. A price move gains on one leg what it loses on the other; the difference between the two funding rates is what the pair earns.
What it costs
This strategy is open on every plan. What it trades is fixed by its design, so every plan runs the same scope; Standard is free.
Recommended minimum vault: Elite · See all store pricing →
How it works
The strategy runs on two vaults, one per exchange. Every round it reads each exchange's own funding rate for the contract. While the short side's rate is higher than the long side's by your opening gap, 0.03% per interval by default, it opens both legs: a short on one exchange and a long of the same value on the other, at the leverage you set. Once the gap narrows to your closing level, 0.005% by default, it closes each leg. Each leg's leverage and distance to liquidation are checked on its own exchange.
Key Features
Strategy profile
A snapshot of how this strategy behaves and who it suits, not a forecast of returns.
These are our assessments of strategy character, not user-specific performance figures.
Two exchanges means two margin accounts. A sharp move hits the losing leg first, and if its margin runs out it can be liquidated while the winning leg sits on the other exchange. Funding rates change every interval, and exchanges can pay at different intervals for the same contract, so a gap that looks wide may not compare like with like. Every round trip pays fees on four trades.
All figures on this page are simulated or historical backtest results, shown for information and education only. They are not real customer results, they do not include your specific fees and slippage, and past performance does not guarantee future returns. Your capital is at risk.
Frequently Asked Questions
Quick glossary
Definitions for the trading terms used on this page.
- Backtest
- A simulation of how a strategy would have performed on historical price data. Past results never guarantee future returns - markets change.
- Slippage
- The difference between the price you expect and the price you actually get when an order fills. Worse on illiquid pairs and during fast markets.
- Spread
- The gap between the best buy price (bid) and the best sell price (ask). Tight spreads = liquid market, wider spreads = more cost per round trip.
- Stop-loss
- An automatic exit order that closes a losing position when price hits a chosen threshold. Caps how much one bad trade can hurt you.
- Take-profit
- An automatic exit order that closes a winning position once price reaches a chosen target. Locks in gains without relying on you to watch the chart.
- Volatility
- How sharply price moves. High volatility = bigger swings in both directions, which means more opportunity but also more drawdown risk.
Seen the same contract pay different funding?
Every new Cross-Exchange Funding Arbitrage starts in paper trading: its orders are kept on paper and listed on the strategy page, and a paper run stops by itself after an hour.
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