Perpetual futures have price differences depending on investment sentiment. The futures market adjusts these price differences through the Funding Rate. When futures prices are high, longs pay shorts, and when low, shorts pay longs to balance spot and futures prices. By utilizing this structure, an investment strategy exists where one can purchase spot assets, take a short position in futures to hedge price fluctuations, and earn income through funding rates. We have compiled top tokens showing profit opportunities through real-time high funding rates. [Editor's Note]
As of August 16th at 12:10, according to data analysis platform DataMaxiPlus, the token showing the highest funding rate arbitrage opportunity is Altura (ALU).
Altura shows a funding rate return of 0.1944% by taking a margin short position on HTX and maintaining a futures long position on Gate.io, with an annualized return of 4.26%, estimated annual funding rate income of approximately $21,245.52.
Altura can provide the same return structure by combining MEXC spot and Gate.io futures trading, or by solely applying Gate.io's spot-futures strategy. The spot price is $0.01572, with futures at $0.01578, showing a slight premium.
Loom Network (LOOM) can also achieve an annualized return of 4.13%, approximately $20,589.18, by utilizing the spot-futures strategy on Gate.io with a 0.0942% funding rate. The same return figures are maintained in strategies combining MEXC spot and Gate.io futures.
For Griffain (GRIFFAIN), when combining MEXC and Gate.io, the funding rate return is annualized at 4.04%, with expected income of about $20,140.68. The internal Gate.io strategy also provides identical results with similar premium conditions.
FLOCK can expect annual income of approximately $18,882.69 by purchasing spot on Upbit or MEXC and establishing a futures position on Gate.io, with a 0.0432% funding rate applied.
Such funding rate arbitrage strategies can reduce price volatility risk by creating a market-neutral hedge through setting short positions in spot markets and maintaining long positions in futures markets. However, due to margin trading characteristics, actual returns need to be adjusted considering interest costs and transaction fees.
๐ผ Top 5 Highest Funding Rate Tokens
โฒAltura(ALU) - Gate.io: 0.001944 (4.26% annualized)
โฒLoom Network(LOOM) - Gate.io: 0.000942 (4.13% annualized)
โฒGriffain(GRIFFAIN) - Gate.io: 0.001843 (4.04% annualized)
โฒFLOCK(FLOCK) - Gate.io: 0.000432 (3.78% annualized)
โฒSkyAI(SKYAI) - Gate.io: 0.001612 (3.53% annualized)
๐ฝ Bottom 5 Lowest Funding Rate Tokens
โฒFLOCK(FLOCK) - Gate.io: -0.005387
โฒFLOCK(FLOCK) - Gate.io: -0.002005
โฒFLOCK(FLOCK) - Gate.io: -0.001152
โฒAltura(ALU) - Gate.io: 0.000252
โฒLoom Network(LOOM) - Gate.io: 0.000025
Investors must carefully review fees, slippage, margin requirements, and maintain flexible responses to real-time market changes when executing funding rate arbitrage strategies.
When funding rates are high or positive, long position demand increases, making futures prices relatively more expensive than spot prices, requiring long positions to pay funding rates to short positions. Investors can secure funding rate income by implementing spot purchase and futures short-selling strategies.
Conversely, when funding rates are low or negative, short position demand increases, making futures prices lower than spot prices, requiring short positions to pay funding rates to long positions. Investors can maximize funding rate arbitrage by utilizing spot selling and futures long strategies.
Funding rate arbitrage is a strategy targeting stable returns regardless of market volatility, usable even when long-term market direction is difficult to predict. However, as funding rates are highly variable based on market participant position ratios, a strategic approach considering funding rate differences between exchanges and capital costs is necessary.
[This article does not provide financial advice, and investment outcomes are the sole responsibility of the investor.]
Real-time news...Go to TokenPost Telegram
<Copyright โ TokenPost, unauthorized reproduction and redistribution prohibited>
