How our client made $44,488 from funding arbitrage in a single trade ?
The market is dumping, but Arbitragescanner.io clients are dominating. The main advantage of arbitrage is that it doesn’t matter whether the market is pumping or dumping what matters is volume. For arbitrage traders, direction is irrelevant.
On October 23, the client spotted a suitable funding opportunity and opened positions. Here’s what he did:
— Went long where the funding rate was strongly negative (to receive the funding payments).
— At the same time, opened a short position for the same volume on another exchange to lock in the price and eliminate risk.
How does profit from funding work?
The idea is simple: you earn more from funding than you pay on your hedge.
For example:
— On one exchange, the rate is -2% → you receive 2%.
— On another exchange, the rate is -0.5% → you pay 0.5%.
Net profit: 1.5%.
Because of the hedge, price movements of the asset don’t affect the result. This is arbitrage, not trading.
Client’s results:
— One position: -$41,608
— Second position: +$86,096
— Total profit: +$44,488
In short, the profit came from the difference in funding rates between two exchanges.