Crypto Perpetual Futures: Funding Rates, Arbitrage, and U.S. Exchange Models
Article OKX Learn
Summary
The article introduces perpetual futures as non-expiring contracts whose funding payments help keep contract prices near spot prices. It explains that funding transfers between long and short holders can affect position profitability and outlines arbitrage approaches based on funding differences within or across exchanges and assets. The discussion also compares centralized and hybrid exchange designs, emphasizing custody, transparency, and regulatory compliance.
Key ideas
- Perpetual futures have no expiry, and funding payments help align their prices with spot markets.
- Funding rates affect the carrying cost or benefit of long and short positions.
- Funding differences may support single-exchange, cross-exchange, or multi-asset arbitrage strategies.
- The article says institutional traders have advantages in speed, tooling, and risk controls.
- It connects U.S. product development with compliance and custody concerns, but offers no detailed regulatory analysis or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.