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How do Unrealized Profit and Loss (UnPnL) affect Funding Rate Arbitrage strategy?
Funding Rate Arbitrage maintains a neutral mechanism and inherently does not depend on price direction; however, unrealized profits can dis…
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Deep dive into Spreads (Gaps, Slippage) in order book - The technical nuances rarely discussed
In the Funding rate market, significant slippage on entries and exits erodes your profitability. Market makers and exchanges are fully awa…
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ADL is a major issue in funding rate arbitrage.
ADL (Auto-Deleveraging) is an exchange-level mechanism triggered during extreme volatility when liquidity is insufficient to liquidate los…
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Risks associated with Funding Rate Arbitrage strategies
While achieving a delta-neutral state (Delta ≈ 0) mitigates price volatility, funding rate arbitrage still involves risks such as slippage…
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Does funding rate arbitrage violate exchange policies?
Funding rate arbitrage is a legitimate trading strategy and does not violate exchange policies. Funding Rate is a key market mechanism, simi…
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Delta neutral? Why utilize it for funding rate arbitrage?
1. Delta neutral Opening a single-sided position exposes you to directional risk and market volatility. Therefore, to mitigate this risk, yo…
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What is Funding Rate Arbitrage? How is profit generated?
1. What is Funding Rate Arbitrage? Funding rate is exchanged between buyers and sellers. After each funding interval, the exchange acts as a…
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Spread in Orderbook
1. What is Spread and why is it important? Spread, also referred to by other terms such as Slippage or Gap, is the difference between the bi…
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Connect with XAPY
To connect exchanges with XAPY: Step 1: Register and complete verification on the crypto exchanges supported by XAPY. Step 2: Register an acc…
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