1. Have equal long & short position 2. Collect funding rate interest
Questions:
• What is funding rate?
• Where does it come from?
• How can you open a FR Arb position?
• Which tools help us pick a good position?
• When should you close your position?
2/
Funding rates incentivize keeping and asset's mark price on an exchange close to its index price.
Mark Price: Current contract price on exchange
Index Price: Averaged price amongst major exchanges
It get's much more complicated, that's for another day.