Crypto Funding Rate Arbitrage Strategy
Funding rate arbitrage: short perps + buy spot when funding >0.1%/8h. Delta neutral, collect funding payments. Close when funding normalizes. Best during extreme greed.
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Crypto Funding Rate Arbitrage Strategy
When perpetual futures funding rates are extremely positive (>0.1% per 8h), the market is overleveraged long. Short perps while buying spot as a hedge. Collect funding payments every 8 hours while being delta neutral. When funding normalizes, close both positions. Risk: exchange counterparty risk, liquidation risk if not properly collateralized. Works best during extreme greed periods.
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