$BTC Original image author come out, let him see what arbitrage is. Image 1 Assume that at 29,000, nearly 10 large coins were opened. According to the coin price of 30,000, the 10 large coins are calculated. Coinglass queries the cumulative funding rate of Binance's large coins over the past year to be 7.5543. Assuming the coin price remains around 30,000, the annual funding rate is 5, with 300,000 USDT, the arbitrage profit is 15,000 USDT.
The actual amount is 250,217.1 - floating loss of 160,875.8 = 89,341.3 USDT in large coins, approximately equal to 3.03 large coins. Based on a coin price of 30,000 and a rate of 5, the arbitrage profit for 90,900 USDT over a year is 4,545 USDT.
Assuming the coin price is 30,000, buying 10 large coins in spot and shorting 10 large coins in contracts, the joint margin can just place a few large coins temporarily, while the rest can be placed in financial management or staked for mining. When the current coin price is 84,000, based on 80,000, the funding rate calculated at 5 yields an arbitrage profit of 40,000 USDT. Based on the initial capital of 300,000 USDT, the annualized arbitrage is 13% (excluding financial management, staking, mining, etc.). The higher the coin price, the more profit is made.
The actual amount is now 3.03 large coins at a current price of 84,000. Calculating at a rate of 5 based on 80,000, the cost is 90,900 USDT. The position value is 250,000 USDT, with an annual profit of 12,120 USDT, and the annualized arbitrage is 13%. If the rate is calculated at 10, the arbitrage profit would be 24,240, with an annualized return of 26%. The actual return is about 15%-30%. Of course, if the coin price continues to drop, the arbitrage profit will also decrease. Advice: Staying alive at the poker table is the most important.