Funding Rate Arbitrage: Cash-and-Carry and Binance–OKX Spread Trades, Returns and Risks

Funding arbitrage is often called crypto's "low-risk yield": hold two opposite positions so price moves cancel out, and collect funding. The idea is simple, but fees, capital usage, funding flips and one-leg liquidations all eat into returns. This guide works through the numbers.

For the basics, see funding rates explained. Our cross-exchange spread page lists the coins with the largest Binance–OKX funding gaps, and each coin's page has 30-day settlement statistics.

Set-up 1: cash-and-carry

Idea: when a coin's funding stays positive, buy spot and short the same amount of the perpetual. Price moves offset; the short collects funding at each settlement.

Example (illustrative numbers):

Buy 10,000 USDT of spot and short 10,000 USDT of the perpetual at 2× (5,000 USDT margin).
Funding holds at +0.03% per 8 hours: 3 USDT per settlement, 9 USDT a day.
Fees: spot buy and sell at 0.1% = 20 USDT, futures open and close at 0.05% = 10 USDT, 30 USDT in total.
Break-even takes about 3.3 days; after that it nets about 9 USDT a day.
Total capital is 15,000 USDT, so the return is about 21.9% a year — not the 32.9% you get by dividing by 10,000.

If funding drops to +0.01%, you make 3 USDT a day (about 7.3% a year); if it turns negative, you pay.

Set-up 2: Binance vs OKX spread

Idea: when the same coin's funding differs a lot between exchanges, short on the high-rate side and go long on the low (or negative) side — both perpetuals, price risk hedged, collecting the difference.

Example (illustrative numbers):

Binance pays +0.05% per 8 hours, OKX +0.01%.
Short 10,000 USDT on Binance and long 10,000 USDT on OKX: net (0.05% − 0.01%) × 10,000 = 4 USDT per period.
Four taker fills at 0.05% cost 20 USDT, so break-even is 5 periods, about 1.7 days.

The two exchanges may settle on different intervals (say 4 h vs 8 h), so compare annualized rates — the spread page already does that.

The real risks

Funding flips: today's high rate can turn negative tomorrow, especially on new and hot coins. The 30-day share of positive settlements on each coin's page shows how stable it is.
One-leg liquidation: the legs sit in separate accounts; a violent move can liquidate one before you top it up, leaving the other exposed. Keep margin ample and leverage low — use the liquidation calculator.
Transfer delays: topping up margin across exchanges takes on-chain time you may not have in a fast market — see how to transfer from Binance to OKX.
Basis and spread: entry prices differ between legs, and the gap between perpetual and spot can widen when you close.
Liquidity and slippage: high-funding coins are often the illiquid ones.
Platform risk: funds are split across two exchanges; a problem at either affects the whole trade.

Choosing coins

Stable funding: use the 7-day average and 30-day positive share, not the current rate.
Liquidity: prefer high-volume coins — the spread page only lists coins with meaningful volume on both exchanges.
Still attractive after costs: work out the break-even time first; shorter is better.
Don't deploy everything: leave a margin buffer on both sides.

FAQ

Is funding arbitrage risk-free?

No. It hedges price direction, but funding flips, liquidations, transfer delays and platform risk remain.

How much does cash-and-carry typically earn?

It depends on the funding level and how long it lasts. Balanced major coins pay little after costs; very high funding usually comes with higher volatility and risk.

How much capital do I need?

Fees are proportional, so size doesn't change the rate of return, but fixed costs such as withdrawal fees weigh more on small amounts, and very large positions face slippage.

How often does the funding rate change?

The predicted rate moves continuously within each period and resets after settlement. Our table refreshes every few minutes.