Detailed Explanation and Practical Application of Funding Rate Arbitrage Strategy
Video description: Specific strategy ideas1. Filter currencies automatically or specify currencies manually, which can refer to historical funding rates and only trade when the threshold is exceeded. 2. Obtain the current rate, exceed the set threshold, and start hedging futures and spot orders at the same time, fixing a certain value. 3. If the price of a single currency rises too much, the strategy can close the position automatically to avoid excessive perpetual risk. 4. If the rate of a certain currency is too low, it is necessary to close the position to avoid being charged. 5. As there is no requirement for opening position speed, iceberg commission is used for opening and closing positions to reduce impact.The overall risk of arbitrage rate strategy is low, with a large capital capacity, relatively stable, and low profits. It's suitable for those who pursue low-risk arbitrage.