Funding Rate Spread — Cross-Exchange

When the same perpetual contract (e.g., BTCUSDT) has significantly different funding rates across exchanges, traders can exploit the spread by going long on the lower-rate exchange and short on the higher-rate exchange.

This delta-neutral strategy collects the net funding rate differential while maintaining no directional exposure to price. However, it requires careful management of execution costs, margin requirements, and timing risk around funding intervals.

Large spreads (typically >0.05% per 8h) are generally considered actionable, but always account for slippage and fees before trading.