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Funding17 minJul 11, 2026

Funding Arbitrage
Binance vs Bybit vs OKX

The three majors everyone compares. Screenshots of funding rates are free. Surviving fees and price drift between the two legs is the real job.

TL;DR: Find a lasting funding-rate gap between two exchanges, open long on one and short on the other (same size), subtract round-trip fees and any adverse price gap, then close when the rate gap shrinks.

📑 Table of Contents
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How Funding Differs Across Venues

Beginner glossary
Spread — Price difference for the same coin on two venues (or spot vs futures).
Net profit — What remains after fees, slippage, withdrawal, and funding.
Order book — Bids and asks. Shows whether liquidity covers your size.
Slippage — Gap between the price you see and the average fill you get.
D/W — Deposit / Withdrawal — whether deposits and withdrawals are open (and on which network).
Funding — Periodic payment between longs and shorts on perpetual futures.
Leg — One side of the arb: buy on A or sell/short on B.
Hedge — The second position that offsets directional risk of the first.
VWAP — Volume-weighted average fill price across the book (not just the best bid/ask).
Basis — Difference between spot and futures price for the same asset.
KYC — Identity verification on an exchange. Without it you often lack withdrawals and futures.

In plain terms: on perpetual futures, longs and shorts periodically pay each other “funding.” The same coin on Binance, Bybit, and OKX is three independent markets: rate, payout interval, and contract price live separately. A rate gap is an opportunity, not guaranteed profit.

The classic idea: go long where you are paid (or paid more), and short where you pay (or pay less). While rates hold, you collect the gap. While the two venues’ prices do not move hard against you, you stay roughly neutral to the coin going up or down.

The 2026 problem is not that rate gaps vanished. The problem is that fees, slippage, and price spread often eat the entire expected income over 1–3 settlements.

Exchange signup (VoltArb referral links)

Open accounts early and complete KYC. Links go to signup / invite pages. This is not an endorsement of any venue — verify availability in your country.

Schedules & Intervals

Across pairs and venues the interval may be 1 hour or 8 hours. It changes — always check the contract card before entry.

VenueTypical intervalWatch for
Binance1h / 8hInterval flips on alts
Bybit1h / 8hMid divergence vs Binance
OKX1h / 8hDifferent premium formula

Cross-Exchange Combos

Binance ↔ Bybit
The most common retail combo: depth plus regularly diverging rates.
Binance ↔ OKX
Sometimes stronger on alts. Watch API limits and mid divergence.
Bybit ↔ OKX
Useful when Binance is relatively flat but these two diverge.

Leg rule: long where you are paid (or paid more), short where you pay (or pay less). Then always check the price spread.

Worked Example: Binance ↔ Bybit

Suppose Bybit funding is +0.04% per 8 hours (longs pay) and Binance is −0.01% (shorts pay / longs receive). Favorable gap for long Binance + short Bybit: about 0.05% per settlement.

Notional $10,000 · 2 settlements
Expected funding$10.00
4× taker 0.055%−$22.00
Price drift against hedge 0.08%−$8.00
Net−$20.00

The rates looked green. The trade was not. You need either more settlements with a durable gap, or lower fees / a better entry.

⚠️ Rule

If expected funding over your hold horizon is less than full round-trip cost (open + close both legs) — do not enter. Period.

Hidden Costs

Four taker fees: open A, open B, close A, close B — often eat the whole edge

Adverse basis: mids move against the hedge

Funding flipped during the hold

Settlement timing: who pays at the timestamp

Margin interest or borrow if there is a spot leg

net ≈ Δrate × N × notional − fees − Δbasis − other

Trader Workflow

1

Sort by rate gap after fees, not by raw rate

2

Check both books for your size

3

Open nearly together, or use limits with a miss plan

4

Log rates, mids, fees, and expected settlements

5

Exit when the gap compresses, N is hit, or a basis stop triggers

Risks

Liquidations under leverage, partial fills, API downtime, regional blocks. Funding arbitrage is not risk-free carry.

5x rule · bundles · exchanges

FAQ

Can you arb funding on Binance alone?
Between spot and perpetual — yes, that is a basis setup. Classic cross-venue funding arb needs at least two venues.
Is a 1h interval better than 8h?
Not always. More frequent payments mean more compounding and more noise. Compute expected result over your hold horizon.
Do you need a scanner?
Manually across three venues and hundreds of pairs — practically no. You need live rate gaps, mids, and fees.
What leverage should you use?
Less than you think. Funding arb does not cancel liquidations. See the 5x rule and keep margin buffer on both venues.
✓ The Bottom Line

Binance, Bybit, and OKX still produce live rate gaps. Money comes not from a screenshot of the difference, but from net math after fees, basis, and execution risk. If the math still leaves a cushion — work it. If not — skip.

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