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Unveiling the 'Passive Income' Funding Rate Arbitrage Strategy in the Cryptocurrency Market
In the highly volatile cryptocurrency derivatives market, in addition to directional speculation on price fluctuations, there exists a relatively stable profit strategy—funding rate arbitrage. This strategy is adopted by many experienced traders and quantitative funds, referred to as 'collecting rent in the futures market.' This article will provide a clear analysis of the principles, risks, and specific operational methods of funding rate arbitrage.
1. What is the funding rate?
To understand arbitrage, one must first grasp its core—the funding rate.
Background: In the perpetual contract (a type of futures contract with no expiration date) market, the contract price needs to stay in sync with the spot price. To prevent the contract price from deviating significantly from the spot price for an extended period, exchanges have introduced the 'funding rate' mechanism.
1. What is the funding rate?
To understand arbitrage, one must first grasp its core—the funding rate.
Background: In the perpetual contract (a type of futures contract with no expiration date) market, the contract price needs to stay in sync with the spot price. To prevent the contract price from deviating significantly from the spot price for an extended period, exchanges have introduced the 'funding rate' mechanism.
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Single month 1934 grid liquidation
Spot trading, making 1934 grid operations in a month, still a blood loss!
Not counting transaction fees and slippage, still a blood loss!
#网格交易 , would you still dare to do it?
First, look at $MIRA
This is the price crossing grid chart from 12:02 on September 26, 2025, to 12:04 on September 27, in one day, with up and down 1% recorded (Figure 1 is the price trend).
Crossed 1 time, a total of 304 times, which means if you operate the grid with a 1% change in a day, there are 304 opportunities for operation in a single day.
This is the single-day grid chart (Figure 2)
Many opportunities, right?
This is the simulated profit chart (Figure 3)
This does not account for trading costs. If you calculate transaction fees and slippage, it would have exploded early.
Not counting transaction fees and slippage, still a blood loss!
#网格交易 , would you still dare to do it?
First, look at $MIRA
This is the price crossing grid chart from 12:02 on September 26, 2025, to 12:04 on September 27, in one day, with up and down 1% recorded (Figure 1 is the price trend).
Crossed 1 time, a total of 304 times, which means if you operate the grid with a 1% change in a day, there are 304 opportunities for operation in a single day.
This is the single-day grid chart (Figure 2)
Many opportunities, right?
This is the simulated profit chart (Figure 3)
This does not account for trading costs. If you calculate transaction fees and slippage, it would have exploded early.
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