SKIP TO CONTENT
delta neutralAdvanced

Basis Trading

Capture funding rate payments through delta-neutral perpetual positions.

Typical APY Range5% - 50%

What is Basis Trading?

Basis trading exploits the difference between perpetual futures prices and spot prices. When perps trade at a premium (contango), longs pay shorts a funding rate. By holding spot long and perp short, you capture this funding while being delta-neutral.

How It Works

  1. Buy 1 ETH spot
  2. Short 1 ETH perpetual
  3. Net exposure: 0 (delta-neutral)
  4. Collect funding payments when positive

Key Considerations

Funding Rates: Change every 8 hours, can be negative Capital Efficiency: Need collateral for both positions Execution: Must maintain hedge accuracy Costs: Trading fees and potential slippage

Best Conditions

Works best when:

  • Market is bullish (positive funding)
  • High leverage demand
  • Stable or ranging prices

Track funding rates with Fensory.

How to Get Started

  1. 1Monitor funding rates across venues
  2. 2Calculate position sizes for neutrality
  3. 3Open spot long position
  4. 4Open equal perpetual short
  5. 5Collect funding payments
  6. 6Rebalance as needed

Pros

  • ✓Market-neutral returns
  • ✓Can be very profitable in bull markets
  • ✓Systematic strategy

Cons

  • ✗Funding can turn negative
  • ✗Requires active monitoring
  • ✗Capital intensive

Compare delta-neutral yields across trusted protocols.

Track live yields, compare protocols, and build your DeFi portfolio with Fensory.

GET EARLY ACCESSArrow right
← BACK TO STRATEGIES