Difficulty
Strategy
Cash-and-Carry Arbitrage
Exploit the price gap between spot and futures by buying spot and selling futures when futures trade at a premium. Lock in the spread as guaranteed profit when futures converge to spot at settlement.
Market type
SPOT+FUTURES
Min capital
$2000+
How it works
Core logic
When futures trade above spot price (contango), buy spot and short an equal amount of futures. The difference (basis) is your locked-in profit. For perpetual futures, collect funding rates; for delivery futures, hold until expiration when prices converge.
When it profits
During periods of high futures premium — typically in bull markets when traders are leveraged long. Spreads of 5–20% annualized are common.
When it loses
When futures trade at discount (backwardation) — then you are paying the spread. Also loses on execution costs if spreads are too thin.
Parameters
Key settings to configure
Total capital
Split between spot purchase and futures margin
Default: 10000 USDT · Min: 2000
Min basis to enter (%)
Only enter when annualized basis exceeds this threshold
Default: 0.5 % · Min: 0.1
Simulator
Estimate cash-and-carry returns
Similar mechanics to funding rate arb — use the funding rate calculator to estimate basis capture.
Inputs
Arbitrage Simulation
Position structure
Long $2500 spot + Short $5000 futures
Entry + exit fees (Binance)
$3.75 + $3.75
Funding income per 8h
$1.50
Daily funding income
$4.50
Total funding over 30 days
$135.00
Net profit
$127.50 (2.55%)
Annualized return
31.0%
Break-even after
1.7 days
Liquidation if price moves up
50.0%
Keep leverage low to stay far from liquidationRisks
What can go wrong
medium risk
Basis reversal
If basis shrinks faster than expected or goes negative, you may need to close at a loss or wait longer than planned.
medium risk
Liquidation on futures leg
If price spikes sharply upward, your short futures position may face liquidation before the basis converges. Keep leverage low.
low risk
Capital locked up
For delivery futures, capital is locked until settlement date. Opportunity cost if better trades appear.
Best exchange
Which exchange is best for Cash-and-Carry Arbitrage?
Ranked by native tool quality, fee structure, and parameter flexibility.
#1 Binance
Manual / API
0.02% maker / 0.05% taker
- Quarterly delivery futures available for true cash-and-carry
- Deepest spot + futures liquidity
- Lowest execution slippage for large positions
Limitations
- No native arbitrage tool — requires API or manual execution
#2 OKX
Manual / API
0.02% maker / 0.05% taker
- Delivery futures available
- Portfolio margin improves capital efficiency
- Basis data accessible via API
Limitations
- Slightly lower liquidity than Binance
#3 Bybit
Manual / API
0.02% maker / 0.055% taker
- Perpetual futures available for funding rate version
- Unified margin account simplifies collateral
Limitations
- No delivery futures — limits pure cash-and-carry
- Higher taker fee
Get started
Ready to run Cash-and-Carry Arbitrage?
Choose the exchange with the best native tool support for this strategy.
Open Binance for Cash-and-Carry ArbitrageRecommended for this page
Open Binance for Cash-and-Carry Arbitrage: Manual / API — 0.02% maker / 0.05% taker
Open OKX for Cash-and-Carry Arbitrage: Manual / API — 0.02% maker / 0.05% taker
Open Bybit for Cash-and-Carry Arbitrage: Manual / API — 0.02% maker / 0.055% taker
This site may earn commissions from affiliate partnerships. Recommendations are based on structured comparison criteria, not paid placement alone.
FAQ
Common questions
What is the difference between this and funding rate arbitrage?
Cash-and-carry uses delivery futures with a fixed expiry — your profit is the basis at entry. Funding rate arb uses perpetual futures — profit depends on ongoing funding rate payments. Cash-and-carry is more predictable; funding rate arb is more flexible.
Sources
References
Related
Explore more strategies
arbitrage
Funding Rate Arbitrage
Earn funding rate payments by holding a delta-neutral position — long spot and short perpetual futures on the same asset. When funding rates are positive, short holders receive payment from longs every 8 hours.
arbitrage
Cross-Exchange Arbitrage
Buy an asset on one exchange where it is cheaper and simultaneously sell on another where it is more expensive. Profit from price discrepancies between exchanges. Requires accounts and capital on multiple exchanges.
Last Reviewed
2026-03-20
Sources
Disclosure
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