Why Funding Rates Vary Between Exchanges
Each exchange has its own user base, liquidity pools, and market dynamics. These differences create funding rate arbitrage opportunities that professional traders exploit daily.
Binance Funding Rates
Strengths: Deepest liquidity, tightest spreads, most competitive funding rates
Typical Range: -0.02% to 0.15% per 8-hour period
Best For: High-volume traders, tight arbitrage spreads
Bybit Funding Rates
Strengths: Popular among pro traders, frequent funding rate swings
Typical Range: -0.05% to 0.25% per 8-hour period
Best For: Traders seeking larger funding rate differentials
OKX Funding Rates
Strengths: Often shows earliest funding rate signals, competitive fees
Typical Range: -0.03% to 0.18% per 8-hour period
Best For: First-mover advantage on funding rate changes
Kraken Funding Rates
Strengths: Often has extreme funding rate outliers on altcoins
Typical Range: -0.10% to 0.50% per 8-hour period
Best For: Altcoin funding rate arbitrage
Cross-Exchange Arbitrage Example
With SOL funding at 0.2% on Binance and 0.4% on Kraken, a $10,000 position going long on Kraken and short on Binance earns 0.2% per period = $20. After fees (~$4), net profit is $16 per 8 hours, or ~$48 daily.