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As a kind of risk-free income, funding rate arbitrage has attracted more and more attention, especially in the bull market, when extremely high funding fees are simply a money-making killer. This article, based on my actual experience, will tell you how to practice funding rate arbitrage.
1. What is the Funding Rate?

Real-time funding rate of BTC
In order to keep the perpetual contract price consistent with the spot price, taking Binance as an example, it is generally settled every 8 hours or 4 hours. The 0.01% in the above figure is the current funding rate, which is converted into an annualized return of 0.01%*3*365=10.95%, that is, you can receive 10.95% of the position value in funding fees in one year.