Funding Day Trade vs Funding Scalp: Which to Choose
Multi Arbitrage has two main funding rate operations. Both use the two legs at the same time, but they think about time in different ways. See which one suits you.
Funding Day Trade
Day Trade enters close to the funding payment, collects the payment (or several) and exits. It is the simplest operation to understand: the goal is to collect the funding rate and, preferably, on coins with consistent payments. Prospector shows how many payments in a row the coin has made, the potential profit and the spread.
Funding Scalp
Scalp works in a short window around the payment, from a few minutes before to a few minutes after. The minimum profit is calculated on the margin, already accounting for leverage, and the card shows the entry and exit spread. It is a faster operation, more sensitive to spread and fees. Scalp is still being calibrated with real trades.
Comparison
| Day Trade | Scalp | |
|---|---|---|
| Focus | Collect the funding rate over one or more payments | Capture the window around the payment |
| Duration | Hours, if the funding rate is worth it | A few minutes |
| Sensitive to spread | Moderate | Very |
| Number of trades | Fewer | More |
| Minimum profit | Set by you | As a % of margin, set by you |
Which to choose
If you are just starting out, Day Trade tends to be easier to follow, because the result comes from recurring payments and involves fewer trades. Scalp demands more attention to fees and spread, and is better for anyone who already understands how to calculate profit well.
Both have three-layer protection and use keys without withdrawals. For the background, see funding rate intervals.
How to choose the minimum profit for each
In Day Trade, the minimum profit is usually thought of per payment and per holding period. In Scalp, it is set as a percentage of the margin, already accounting for leverage. A stricter value reduces the number of trades and raises quality. A lower or even negative value is used only for testing, because it can produce trades with weak results.
Questions to help you decide
- How much time can I spend watching the dashboard?
- Do I prefer a few larger trades or many small ones?
- Do I understand well how spread and fees affect a short trade?
- How much capital can I dedicate to each strategy?
Related guide: what the funding rate is. See also all the crypto arbitrage guides.
Frequently asked questions
Can I use both at the same time?
Yes, with separate settings. Be careful not to concentrate too much of your capital.
Which one makes more profit?
It depends on the market and your settings. No result is guaranteed, and it is best to test with small amounts.
Is Scalp riskier?
It is more sensitive to fees and spread because it is shorter, and it is still being calibrated. Start with small amounts.
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This content is for information only and is not investment advice. Trading crypto derivatives involves a high risk, including the total loss of your capital. Past results do not guarantee future results, and the figures mentioned are examples. Before trading, check whether trading crypto derivatives is allowed in your country and what your tax obligations are. Assess whether the product suits your profile before investing.