HFATArbitrage Terminal
STRATEGY 02Difficulty: Medium

Long + Short

Leverage available on both sides. Long futures on the underpriced exchange, short futures on the overpriced one. Higher capital efficiency with margin trading.

How It Works

LEG A — Exchange A
LONG Futures
Lower price
Net Spread
LEG B — Exchange B
SHORT Futures
Higher price
Example with 3x leverage:
Capital deployed$1,000
Position size (3x)$3,000
Spread captured2.22%
Gross profit$66.60
ROI on capital6.66%

Advantages

  • Higher capital efficiency with leverage
  • No need to hold spot assets
  • Can profit from both directions
  • Extra profit from funding-rate differential

Important

  • !Both legs have liquidation risk
  • !Requires active margin monitoring
  • !Funding rates affect both positions

Key Parameters

Min Net Spread
0.4–1.4%
Double futures fees — paid on both exchanges
Leverage
1–3x
On both legs
Hold Time
Minutes–Hours
Shorter due to funding
Risk Level
Medium
Double liquidation risk

Live Long+Short Signals (example)

18 active
PairRouteNet Spread
ETH/USDTKuCoin ↔ Bybit+0.28%
BTC/USDTGate ↔ Binance+0.22%
ARB/USDTCoinEx ↔ KuCoin+0.19%