Glossary · Definition
Funding Rate Arbitrage
Funding rate arbitrage is a trade that holds a coin and at the same time bets against it in a perpetual futures contract, so that price moves cancel out and the trader collects the funding payments the contract pays.
Join CryptoBipto to view the full explanation.
The full entry for Funding Rate Arbitrage covers the detailed definition, how it works, an example and the mistakes beginners make.
More terms about Trading and market structure.
CryptoBipto is a crypto education platform. It does not buy, sell, hold or send cryptocurrency for anyone, and it does not give financial advice.