You can earn on the funding rate on Binance using the arbitrage strategy. Here's how it works:

1. Opening Positions: In futures markets, traders pay or receive a funding rate depending on the direction of their positions (long or short). When funding rates are positive, traders with long positions pay traders with short positions. Conversely, when the rate is negative, short traders pay long traders.

2. Arbitrage Strategy: If you open a long position in the spot market and a short position in futures at the same time, you will insure yourself against price movement, but will be able to earn on a positive funding rate. For example:

You buy an asset on the spot market (long).

You open a short position on a perpetual futures contract.

If the funding rate is positive, you will be paid interest for holding the short position, with the price change offset by the long position in the spot market.

3. Risk management: It is important to consider that the funding rate may change. To make money on this strategy, you need to closely monitor rate changes and close positions if market conditions change to your disadvantage.

You can earn on the funding rate on Binance using the arbitrage strategy. Here's how it works: