Yesterday I shared with you how to use funding rate arbitrage

Today we will focus on things you need to pay attention to when using funding rate arbitrage.

1. Reduce leverage to prevent liquidation. Although prices on different exchanges are almost the same, this arbitrage risk is very low, but you need to be wary of the risk of exploding positions due to market distance fluctuations, so low leverage is required.

2. Currency selection is very important. Try to choose a currency with a positive rate and a negative rate among different exchanges. You can maximize your income. At the same time, choose a large exchange. The depth of a small platform may not be enough.

3. Do not operate frequently. The wear and tear caused by capital rate arbitrage is handling fees, and the final income is capital fees - handling fees = income. Therefore, frequent operations may cause the capital fees obtained not to cover the handling fees.