The part where you note funding is a direct transfer between longs and shorts, not an exchange fee, really lands. As someone who tracks costs, that shifts how I model PnL on perpss and makes cash and carry very very clean when funding is rich even if price goes nowhere. Dont mind me, my spreadsheet did a happy dance over that fundng detail :)
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LOL
Its an amazing financial instrument and for those who are good at it, a regular source of income from those fees.
yep, tiny nitpick: funding isn’t really fees to the exchange, it’s a transfer between longs and shorts, so your incmoe is someone else’s outflow :)
If you stay neutral with cash and carry, you can clip funding, just watch rate flips and clamp rules.
Also factor maker taker costs and ADL risk, they can eat a chunk, definietly on high leverage.
you running it delta neutral or taking directional swings?
Exactly, if I said that, it was an error. Thats one of the core principles is the flow of cash to traders.