Position Sizing

How Much Capital You Need And How To Split It Correctly

Always split your capital equally — half to spot, half to futures. This is what makes the hedge perfect and the risk truly zero.

📅 June 2026⏱ 5 min read🏦 Market X Only⚡ Zero Risk

The Golden Rule: Split Equally

For funding rate arbitrage to be truly zero risk, your spot position and your futures position must be exactly equal in dollar value. This is the fundamental rule. Any imbalance creates directional exposure — meaning you can lose money if price moves against the larger side.

⚖️ The formula is simple:
Spot position = Futures position = Total capital ÷ 2
Example: $1,000 total → $500 spot + $500 futures at 1x

Why Must They Be Equal?

SetupETH rises 10%ETH falls 10%Risk Level
$500 spot + $500 futures (correct)+$50 spot, -$50 futures = $0-$50 spot, +$50 futures = $0ZERO ✅
$700 spot + $300 futures (wrong)+$70 spot, -$30 futures = +$40-$70 spot, +$30 futures = -$40EXPOSED ❌
$300 spot + $700 futures (wrong)+$30 spot, -$70 futures = -$40-$30 spot, +$70 futures = +$40EXPOSED ❌

Minimum Capital Required

Market X requires a minimum deposit of $100 to qualify for the $20 signup bonus. At $100 total:

This is a small start — but the compounding effect builds it significantly over time. We recommend starting with $500–$1,000 if possible for more meaningful monthly earnings.

Position Sizing Reference

Total CapitalSpotFutures (1x)Monthly at 7.2%Monthly at 13.5%
$100$50$50$3.60$6.75
$250$125$125$9.00$16.88
$500$250$250$18.00$33.75
$1,000$500$500$36.00$67.50
$2,500$1,250$1,250$90.00$168.75
$5,000$2,500$2,500$180.00$337.50
$10,000$5,000$5,000$360.00$675.00

How To Scale Up Over Time

As you earn funding payments, reinvest them by increasing both positions proportionally. If your futures balance grew by $50 from funding, add $50 more to spot as well — keeping the 1:1 ratio. This is how compounding works in practice.

Scaling Example — Month 3

Started with: $500 spot + $500 futures

After 3 months at 13.5%/mo: futures balance grew by ~$218

Action: add $218 to spot position too

New positions: $718 spot + $718 futures

Next month earnings: based on $718 not $500 → larger payment

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