Spot-perp arbitrage
Spot-perp arbitrage works the gap between a perpetual and its spot market. When the perpetual trades rich, buy spot and short the perpetual; when it trades cheap, reverse the legs.
Spot-perp arbitrage
Highest net funding 8h
View all spot-perp arbitrage| Coin | Long leg Spot | Short leg Perp | Net funding 8h | Last 7 days, cumulative | Basis |
|---|---|---|---|---|---|
Data as of
The two legs
Spot long against perpetual short, or perpetual long against spot short. The legs sit on one venue or across two. Basis and spread convergence explains the basis.
Entry, holding and exit
Entry: open when the basis at executable prices covers fees and the funding rate favors the perpetual leg.
Holding: a spot short sells coins borrowed on margin, and interest accrues. A perpetual short receives the funding fee while the rate is positive.
Exit: close when the basis converges or reaches your exit threshold.
Result and costs
The result comes from the basis converging. A perpetual short also receives funding while the rate is positive. Costs are the fees on both legs. A spot short adds borrow interest, and the rate can rise.
Related reading: how hedged arbitrage earns and What is the funding rate.
Key metrics
| Key metrics | |
|---|---|
| Basis | The perpetual price minus the spot price, as a percentage of spot. |
| Funding rate | Compare both legs normalized to one period, alongside each venue’s settlement period and rate cap. |
| Borrow availability | A spot short sells coins borrowed on margin. The available amount and interest vary by venue and over time. |
| Depth and volume | Order book depth, volume and open interest set how much size each leg can take. |
| Liquidation distance | How far price can move before a perpetual leg reaches liquidation. |
Main risks
Spread widening: After entry the spread or basis can widen further. The position shows an unrealized loss until it converges.
Borrow cost: Interest accrues on borrowed coins. The rate can rise and the available amount can run out.
Liquidation: Each perpetual leg holds its own margin. A sharp move can liquidate the losing leg while the gain sits on another venue and cannot cover it.
Leg gap: If one leg fills and the other does not, the position carries directional exposure until the leg gap closes.
Venue risk: Funds sit on two venues. Either one can halt withdrawals, suffer an API outage, delist a market or fail.
See the main risks of arbitrage for a fuller account.
Data in Z Market Lab
The funding rates page gives the Long spot / Short perpetual basis for each coin, with funding history for the perpetual leg. The opportunity table in the market monitor lists spot–perpetual opportunities row by row with their open and close spreads, and covers both forms of arbitrage type: Long spot / Short perpetual and Long perpetual / Short spot.
Execution in ZML Trade
Trade runs the spot and perpetual legs on one venue or across venues. On supported exchanges, a spot short borrows and repays automatically on cross margin.
Connect an exchange covers adding accounts, Parameters covers each combo setting, and Risk controls covers liquidation distance.