UTEX

We're working on a complete beginner's guide to arbitrage 📓 Already familiar with the basics? Skip ahead. This is market-neutral arbitrage: you earn not from price movement, but from regular funding payments* collected by holding a position on Binance (or another crypto exchange). You hedge it with the opposite position on UTEX. *Funding is a periodic payment exchanged between traders on opposite sides of a trade. When the perp price trades above spot, longs pay shorts. This makes holding a long more expensive, pushes some traders to sell, and pulls the perp price back toward spot — a self-correcting mechanism. Funding fluctuates constantly and can turn negative. On Binance it's typically settled every 8 hours (sometimes every 4). UTEX charges no funding, so the two sides won't offset each other. How to get started 1️⃣ In the Binance Futures funding section, find an instrument with positive funding (longs paying shorts). Review the last 7–14 days of history — you want a consistently positive rate, not a one-time spike. 2️⃣ Open a long on UTEX and a short on Binance at the same time, for equal sizes. Use isolated margin, not cross margin.

Your return = (position size × funding rate × number of intervals) − overnight fees − one-time commissions.

To break even, your daily funding income needs to cover the daily overnight fee plus any one-time commissions. ⛽️ Take gas (GASM) as an example: Overnight rate (0.0194%/day) ÷ 6 intervals (4-hour funding) ≈ 0.0032% — that's your breakeven funding rate per interval. Once you factor in one-time commissions, you need roughly ~0.01% per interval. In May, natural gas (NATGAS) was yielding ~3.3% over 3 days — but windows like that tend to be short-lived. Key risks ⚠️ Funding can drop to zero or flip negative. ⚠️ Prices can diverge between platforms by 1–3%. ⚠️ A sharp price move can trigger liquidation — your Binance position could get blown out while UTEX is closed (weekends or maintenance). Keep a healthy buffer from liquidation on both legs. Bottom line: a viable strategy, but it takes active monitoring, careful math, and discipline. Arbitrage isn’t a form of passive income.