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cash and carry arbitrage

What Role Do Funding Rates Play in a Trading System for Crypto That Uses Perpetual Futures?

29 October 2026 by Robin Banks

What role do funding rates play in a crypto perpetual futures trading system? Learn how they work as a cost, a signal, an alpha source and a risk. Read the guide.

Categories Level 3, Platforms, Brokers & Execution Tags basis trading, cash and carry arbitrage, crypto funding rate strategy, funding rate backtesting, open interest, perpetual futures funding rate, perpetual swap carry cost, premium index, What role do funding rates play in a trading system for crypto that uses perpetual futures?