🔎 GUIDE TO HUNTING FUNDING: EARN FREE MONEY FROM THE MARKET
Hunting funding is one of the safest – stable – ways to earn profits – without needing to predict trends, as long as you understand the mechanism and know how to hedge risks correctly. I will guide you in detail according to two cases: positive funding and negative funding.
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🔵 1. POSITIVE Funding: Short Future + Hedge with Spot
When funding is positive, it means that Longs are paying Shorts.
→ For each funding period (usually 8 hours), you only need to hold the Short position to receive money.
🚀 The standard method:
1. Open SHORT on Future (main position to receive funding).
2. Buy SPOT to hedge – because Short is a counter-trend position; if the price rises sharply, it will liquidate the position.
⇒ Spot acts as insurance; as the price rises, Spot rises accordingly, compensating for the Short position.
🔒 Why is hedging with Spot the most standard?
Spot is not subject to liquidation.
No matter how much the price rises, you are absolutely safe.
Profits come from funding money, not from price fluctuations.
💡 Important note:
• Exchanges may restrict borrowing margin coins when funding is too negative or demand for borrowing is high.
• Spot can always be purchased, so using Spot for hedging is the simplest and safest method.
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🔴 2. NEGATIVE Funding: Long on exchange A – Short on exchange B to earn the funding differential.
Negative funding means that the Short party is paying the Long party.
But:
❌ Long Spot cannot earn funding.
✔ Long Future can only earn funding.
=> However, to keep Long Future safe, you need to hedge it by Shorting on another exchange.
🔥 The correct way to hunt for negative funding:
1. Exchange A: Open Long Future to receive negative funding (the Short party pays you).
2. Exchange B: Open a Short Future with the right amount to hedge (lock in price risk).
→ Thus:
Regardless of whether the price goes up or down, you are not worried, as the two positions offset each other.
For each negative funding period, you receive money from the Long Future on exchange A.
The Short position on exchange B is only to lock in the price, not for profit.
🧠 Why use TWO EXCHANGES?
If you open both Long and Short on the same exchange, funding will cancel out → profit = 0.
But when using 2 different exchanges, funding is calculated completely independently.
👉 You only receive funding on the exchange with negative funding (Exchange A).
👉 The exchange B does not affect.
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⚠️ Risks to be aware of before hunting for funding.
• Price differences between two exchanges may vary → be careful when opening/closing orders.
• Transaction fees and funding fees can erode profits if funding is too low.
• When negative funding is too deep, the exchange may limit borrowing margin coins.
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✅ When should you hunt for funding?
• Positive/negative funding > 0.1% each period.
• Funding is maintained over multiple periods consecutively.
#Funding #Binance $SOON $DUSK $RESOLV
