Recently, the Bitget incident has caused quite a stir, and many people are asking how such arbitrage is done. How can arbitrage yield up to 1500 times?
In simple terms:
At that time, many small coins on a certain exchange could also be leveraged up to 100 times or even 200 times. When the funding rate is between 2% and 3%, I would fully leverage my position ten seconds before settlement to earn multiple funding rates; if my margin gets liquidated, I just let it go.
For example:
The funding rate is -3%.
I open a position with $1000 using 200x leverage.
At settlement, the funding rate gives me $6000.
The margin liquidation loss is $1000.
I can earn $5000 in ten seconds. — Yes, it's that simple.
But at that time, when I told others, no one believed me.
Because situations where the funding rate is full don't happen every day; you need to wait and watch. You have to keep an eye on the rates, and opportunities might only come once every two or three days, and you have to use real money to test it.
Ultimately, it just takes a bit more effort, along with just enough luck. I know that this kind of operation will eventually be noticed by risk control.
So for every profit I make, I only leave a small portion to continue rolling, and withdraw everything else. As for how I discovered the loopholes? It's quite funny:
At that time, I was still a novice, knowing nothing and shorting a certain coin.
When the time was up, and money was deducted, I was furious and asked around, only to find out about the funding rate.
As a result, when I saw that a 2% rate could still leverage, I immediately realized there was money to be made.
Sometimes a crisis really is an opportunity.
An apple that falls on your head may be a gift from heaven.
