Funding rate for make profit

[GreatArkansas]

(....)
Are you using funding fee to make money from the derivative market? If so, what is the most possible way have you used it to make money successfully or it is not actually working?

Not me but I see a lot of whales are doing this, they are playing around and making profits off the funding rate.
If you just understand easily these funding fees, I believe you can make some profits on it especially if you are using different exchanges with different funding rate and that's the time you can make also profits but be careful, it's still risky.

[OcTradism]

Not me but I see a lot of whales are doing this, they are playing around and making profits off the funding rate.
If you just understand easily these funding fees, I believe you can make some profits on it especially if you are using different exchanges with different funding rate and that's the time you can make also profits but be careful, it's still risky.

It is one of ways to get profit from trading and the market but I agree with you, it's risky to chase profit with funding rate.

The market is changing quickly and funding rate is more slowly with its changing intensity, each 8 hours. If we can not close our positions from trading, to have profit or a bit worse but still good, to have a draw, it's more risky if we let a position opens just because we feel an upcoming funding rate will give us profit.

[Tomson3]

How can I profit? Which is the first step?

[teosanru]

Two days ago, I opened a position with a very risky volatile coin at some minutes to its funding rate fee, the coin was having -1.98% funding rate fee. You can see how risky that is which I can not call trading but gambling.

After I opened a long position, luckily I was able to have unrealized PnL of $67, but it was just some seconds remaining to another 8 hours funding rate time to start counting down. I waited and all that I noticed in less than a second after the next eight hours began was that the $67 profit that was seen suddenly droped to $4.

I was paid the funding fee which made me to make almost $60 in total. I mean the profit from trading is around $3 if trading fee has been deducted while the remain profit was from funding fee.

I noticed that traders are using the funding fee to manipulate the market, although we can not call it manipulation too because they want to make profit, but they can also lose. That is trading. If you are trading these less volatile coins with high funding fee, you will noticed what that I am talking about.

Are you using funding fee to make money from the derivative market? If so, what is the most possible way have you used it to make money successfully or it is not actually working?

On centralized manipulated exchanges I would stay miles away from using Funding fees to actually make any profit. It's because exchanges could easily change the direction of the fees based on their arbitrary decisions to get more profits. Also if you want to make profits in this way you have to study the market on a macro level. You have to continuously keep looking at the order book, the sentiment of the market, the types of trade which have been recently hit in the past trades. From what all this sounds like this definitely isn't worth the pain that it would give you.

[Coin_trader]

How can I profit? Which is the first step?

The OP is asking too how to make consistent profit on funding rater after experiencing good profit on it.

Funding rate/fee is the fee which the losser side pay to the winning side on trading. It’s very hard to make a consistent profit on this fee since it’s dynamic while placing an order on the positive side of the fee will give you more risk of losing on your original trade since it’s an indicator of the trend.

Funding rate is too small and you can only have a decent profit from it by using huge capital or leverage to increase your margin size. I believe you can only maximize the use of it if you have enough capital to dictate the market orderbook but this is clearly manipulation. Just do the normal trade and consider funding rate as extra bonus on your position.

[logfiles]

How can I profit? Which is the first step?

Have you read through the thread? There are so many opinions from different members about the possibility of profiting or not. It's up to you to choose whether you can try profiting out of it or not, but one thing for sure is the odds will mostly be against you.
Maybe arbitraging, but you might need a good arbitrage trading bot to help you along with a good amount of funds on different exchanges.