Funding Arbitrage Checklist

Funding arbitrage should be checked step by step. Confirm the direction, the timing, the execution and the risk in order. This guide is meant to be read before every funding trade, not as theory.

Open funding dashboard View pricing

New users get a 1-day free trial before paid plans.Step-by-step orderTiming and execution firstExit plan required

Checklist / Funding

What this guide covers

1
Confirm direction and timing
First confirm which side receives funding and which side pays.
2
Confirm the same asset and contract
Both legs must be the same underlying asset and compatible contract type.
3
Check execution
Compare entry spread, order book depth and realistic size.
4
Set size, leverage and exit
Finish with risk.

Step-by-step orderTiming and execution firstExit plan required

Confirm direction and timing

First confirm which side receives funding and which side pays. Then confirm the next funding time and whether both exchanges use the same interval. A large rate is less useful if the payment is far away or likely to change.

Identify the receiving side and the paying side.
Check the next funding time on each exchange.
Compare funding intervals so the payments line up.

Confirm the same asset and contract

Both legs must be the same underlying asset and compatible contract type. Mismatched settlement currency or contract design can quietly change the real risk of the position.

Same underlying asset on both legs.
Compatible contract type and settlement currency.
No hidden difference in how the contract is priced.

Check execution

Compare entry spread, order book depth and realistic size. If the book cannot support your size, expected funding can be smaller than the slippage cost. Include taker fees, possible maker fees and the cost of closing later.

Depth must support your intended size on both legs.
Entry spread should not already eat the funding edge.
Count taker fees, maker fees and the exit cost.

Set size, leverage and exit

Finish with risk. Keep leverage low, confirm liquidity on both venues, note any deposit, withdrawal or maintenance warnings, and prepare a clear exit if the spread widens.

Keep leverage low enough to survive divergence.
Confirm no deposit, withdrawal or maintenance warnings.
Prepare the exit plan before opening.

Pre-trade funding checklist

Read this list before every funding trade and only enter when each item is clear.

Funding direction and receiving side are confirmed.
Next funding time and intervals line up on both venues.
Both legs are the same asset and contract type.
Order book depth supports your size on both legs.
Fees, slippage and exit cost stay below the funding edge.
Leverage is low and the exit plan is ready.

Funding checklist risks

The funding rate changes before the payment.
The exchanges settle funding at different times.
The contracts differ in settlement or pricing.
Depth cannot support the intended size.
Fees and exit cost quietly exceed the funding edge.

Funding arbitrage checklist FAQ

What is the first thing to check?

Funding direction and next funding time. If you do not know which side receives funding or when it pays, no other number matters yet.

Why compare funding intervals?

Two exchanges can settle funding at different times. If the intervals do not line up, one leg may pay or receive funding while the other does not, changing the net result.

Does the checklist guarantee a profit?

No. It reduces avoidable mistakes, but funding, liquidity and execution can still move against you. It is a discipline, not a promise.

Related guides

Fees / Net profit

Exchange Fees Explained

Understand the costs that decide whether an arbitrage trade is real: maker fees, taker fees, funding payments, withdrawal fees, and hidden execution costs.

Read

Advanced / Mean reversion

Z-Score Spread Trading Guide

Learn how z-score helps traders identify unusually wide spreads, avoid random entries, and plan exits when the spread returns closer to normal.

Read

Exchanges / Setup

How to Choose Exchanges for Arbitrage

A practical guide to selecting exchanges for arbitrage based on liquidity, fees, listed markets, funding quality, API stability, and operational risk.

Read