Funding (funding fee or funding rate) is a commission charged on perpetual futures on centralized exchanges. The main purpose of funding is to maintain a minimum difference between the spot and perpetual futures. Funding commission is periodically paid to traders with a long or short position. You can capitalize on this mechanism by arbitraging the funding rate (Funding Rate Arbitrage).

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Earning on Funding Arbitrage (or Funding Arbitrage) is a strategy in which traders use the difference between the Funding Commissions on open-ended futures and the real (spot) price of the asset. The essence of the strategy is to open simultaneously long and short positions on different platforms or between futures and spot. In this case, the main income comes from the positive funding commission paid to the trader.