Funding rate arbitrage lets traders earn yield from the gap between perpetual futures and spot prices. In 2026 the spreads are smaller than 2021, but three strategies still work if you size, execute, and hedge correctly.
1. Cash-and-Carry
Buy the coin on spot, short the same size on perp. Collect funding.
2. Cross-Exchange Arbitrage
Long where funding is most negative, short where it is most positive. Net spread can be 500%+ APR. See live cross-exchange arbitrage opportunities or size the carry with the funding rate calculator.
3. Directional Funding Trade
When funding is deeply negative, the crowd is short — compare venues on the funding rate heatmap. Take a long to earn funding and capture a squeeze.
For education only. Not financial advice.