Source: https://mochatrade.com/learn/glossary/funding-rate-arbitrage

# Funding rate arbitrage
URL: https://mochatrade.com/learn/glossary/funding-rate-arbitrage
Last modified: 2026-10-17

Funding rate arbitrage is holding a long on one venue and a short on another in the same asset, with no view on price, to collect the difference in funding. It works because [crowding is not the same on every venue](https://mochatrade.com/blog/mocha-markets-weekly-28f), and the costs that eat it are [fees and spread on both legs](https://mochatrade.com/support/mochatrade-trading-fees-and-funding-rates-explained).

## Related terms

- Funding rate: https://mochatrade.com/learn/glossary/funding-rate
- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures
- Round-trip trading cost: https://mochatrade.com/learn/glossary/round-trip-trading-cost
- Perpetual premium (basis): https://mochatrade.com/learn/glossary/perpetual-premium
- ROE (return on equity in trading): https://mochatrade.com/learn/glossary/roe
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.