Spot-Futures Arbitrage Skill

Perpetual futures funding rate arbitrage works by building delta-neutral spot and futures hedge positions to capture funding payments while reducing directional exposure. You hold spot against an opposite perpetual futures contract to systematically collect funding rates.

To monitor funding rates across multiple exchanges, you retrieve live funding rates, annualize them, and rank opportunities by annualized rate. This filtering process identifies the most profitable delta-neutral arbitrage setups before applying your entry thresholds.

Yes, you can automate funding rate arbitrage entry and exit using configurable thresholds. The system enters positions when funding exceeds a threshold and exits when funding deteriorates past a stop-loss threshold, enforcing max exposure and margin constraints.

You track net profit from funding rates by performing fee-aware profit tracking throughout the position lifecycle. This accounting estimates net results by comparing accumulated funding payments against the trading fees incurred during opening and closing.

You size delta-neutral arbitrage positions by calculating position sizing under strict exposure and margin limits. This risk management step ensures your spot and futures hedge positions remain safely capitalized relative to your configured maximum constraints.

You should close a funding rate arbitrage position when the funding rate deteriorates past your configured stop-loss threshold. Exiting based on this threshold prevents directional losses from overwhelming the accumulated funding payments in your hedge.