Smart Arbitrage
Arbitra costantemente e aumenta facilmente i tuoi profitti
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Domande frequenti

1
What is the Smart Arbitrage?
The Smart Arbitrage is an innovative tool designed for traders to engage in arbitrage strategies between perpetual futures contracts and their spot equivalents. It leverages the funding rate mechanism by hedging their futures position with a spot position to collect the funding fee.
2
What are funding fees in Perpetual Futures trading?
Funding fees are periodic payment between long and short position holders in perpetual futures markets, intended to align the futures prices with the spot prices of the underlying asset.

Funding fees = position size x funding rate

Funding rate then determines the funding fee, fluctuating over time for every symbol independently. You can find an overview of the funding rate here for each symbol on Binance Futures. For more information about the funding fees, refer to the dedicated Blog: What Are Funding Fees in Binance Futures?

3
How does Smart Arbitrage work?
Arbitrage involves going long in one market (e.g., spot) and short in the other (e.g., futures) to collect the funding fee. The funding rate arbitrage strategy is delta neutral, meaning it aims to hedge out price movement risks by taking opposite positions in the futures and spot markets. This strategy implies that no matter the price change direction, your profit on a long position will offset your loss on short (or vice versa), and you will collect the funding fee. The goal is to profit from the funding rate payments without being exposed to significant price volatility risks.
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Monitoring / Managing your portfolio
Monitoring your portfolio

Click on [My Portfolio] on Smart Arbitrage homepage or [Earn Wallet - Smart Arbitrage] to track your portfolio details, such as position size, total funding, market value, and receive funding fee alerts.

  • Position Size:
    Notional Values of Spot and Futures position
  • Total Funding:
    Accumulated total of all funding fees collected during the strategy's runtime
  • Market Value:
    Total balance of all assets allocated to the strategy (using last price) + unrealized PnL from futures positions
  • Funding Rate Alert:
    Indicates that current 3-Day Cumulative Funding Rate or the Next Funding Rate has opposite buy/sell direction from your running strategy. Consider ending the strategy manually when triggered

Managing your portfolio

To redeem your investment and close your position, please click on [Earn Wallet - Smart Arbitrage - Redeem].
5
Frequently asked questions on arbitrage strategy
In Smart Arbitrage, the product builds a strategic combination of futures and spot. It involves futures trading that needs to comply with futures trading rules. For more related questions, please refer to the FAQ.
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