STRATEGY 01•Difficulty: Low–Medium
Spot + Short
Buy spot on the cheaper exchange, open a short futures position on the more expensive one. Profit from price convergence between exchanges.
How It Works
LEG A — Exchange A
BUY Spot
Lower price
LEG B — Exchange B
SHORT Futures
Higher price
Example:
BTC @ Binance (Spot)$67,450
BTC @ Bybit (Futures)$67,620
Raw Spread+$170 (0.25%)
After Fees+$112 (0.17%)
Entry Conditions
- Net spread above minimum threshold (configurable)
- Sufficient orderbook depth on both sides
- Available balance on both exchanges
Exit Conditions
- →Spread converges to target (take profit)
- →Spread widens beyond stop-loss threshold
- →Funding rate becomes unfavorable
Key Parameters
- Min Net Spread
- 0.10–0.20%
- Recommended range
- Leverage
- 1–5x
- On futures leg
- Hold Time
- Minutes–Hours
- Typical duration
- Risk Level
- Low–Medium
- Delta-neutral
Risks & Safeguards
Funding Rate Risk
Negative funding on short position can erode profits over time.
Safeguard: Monitor funding rates, exit before unfavorable funding periods.
Liquidation Risk
Sharp price moves can liquidate the futures leg.
Safeguard: Use low leverage (1–3x), enable liquidation guard.
Execution Risk
One leg fills, the other doesn't — orphaned position.
Safeguard: Atomic execution with automatic rollback.
Slippage Risk
Large orders can move the market, reducing actual spread.
Safeguard: Before entry we check the orderbook — twice the target volume must be available, otherwise the deal isn't opened.
Live Spot+Short Signals (example)
24 active
| Pair | Route | Net Spread | Depth | Execute |
|---|---|---|---|---|
| BTC/USDT | Binance → Bybit | +0.23% | $48.2K | Execute |
| ETH/USDT | KuCoin → Gate | +0.19% | $31.7K | Execute |
| SOL/USDT | MEXC → BingX | +0.17% | $22.1K | Execute |