Funding-rate arbitrage
Same asset. Two exchanges. Different rates.
Crypto perps charge a small recurring fee between longs and shorts — the funding rate. Each exchange sets its own. When they diverge, a spread opens up.
The trade
Short the expensive side. Long the cheap side.
Equal size on both. Price moves cancel out — you're delta-neutral. Funding rolls in from both legs.
Quick math
$10,000 margin · 5x leverage · 3 days
Margin per leg$10,000
Leverage5x
Notional per leg$50,000
Net APR captured55%
Funding income (3 days)+$226.00
Round-trip fees−$40.00
Net profit on $10k margin+$186.00
Real spreads compress and reverse. Stack many short trades — don't bet on one running for a year.
Price-spread arbitrage
Same trade shape. Different source of profit.
Same asset trading at different prices on two venues. Buy the cheap side, short the expensive side. Profit when prices converge.
Full guide
with videos
The step-by-step walkthrough
Both strategies in full detail — picking a pair, sizing both legs, setting
entries and exits, and reading every scoring metric. Written guide with
short screen recordings at each step.
What to watch
A few things to keep an eye on.
Funding direction
Rates shift between intervals. Monitor the spread you're capturing.
Leverage & margin
Both legs use margin. Size positions so each side stays comfortable.
Fees & slippage
Trading costs apply on both venues. Factor them into your target spread.
Venue conditions
Each exchange has its own uptime and liquidity profile worth checking.
SpreadLabs finds these for you.
Every cross-exchange spread across 16 exchanges, scored and ranked by APR, in real time. New to this? Start with the step-by-step guide.