Spot + futures: hedging with spot and the three trade directions
A spot leg pays no funding and cannot be liquidated — so spot + futures setups are simpler and sturdier than perp + perp, but need more capital. We look at the screener’s three directions, hedging coins you already hold, and real spot–perp spreads on BTC and ETH.
Perp + perp (lesson 4) keeps both legs on margin. Replace one leg with spot and the scheme gets simpler: spot pays no funding, cannot be liquidated and always converges with the index — the index is calculated from spot prices. The price is capital: spot is bought in full, without leverage.
Spot + Futures: buy spot, short the perp
If the perp on some exchange trades above spot, you buy the coin on spot and open a short of the same quantity on the perp. The profit is the spread between them narrowing; if the funding rate is positive, the short also receives payments every interval. It is the same logic as spot + perp in the funding course, except the main income here is the price spread.
Futures + Spot: buy the perp, sell spot
The opposite situation: the perp trades below spot. You can buy the perp and sell the coin on spot in two ways:
- Sell your own coin. If you already hold the coin, you sell it on spot at the higher price and buy the perp cheaper. Your price exposure stays the same, and the price gap is yours. Negative funding on the long adds income.
- Borrow the coin. Short-sell a coin borrowed on margin. You pay interest on the loan, and for many altcoins borrowing is unavailable — this is harder and more expensive.
| Direction | Legs | Income source | Liquidation risk |
|---|---|---|---|
| Spot + Futures | Buy spot, short the perp | Spread narrowing, positive funding | Short only |
| Futures + Futures | Long perp, short perp on another exchange | Spread narrowing, funding difference | Both legs |
| Futures + Spot | Long perp, sell spot (your own coin or borrowed) | Spread narrowing, negative funding | The long; borrowing costs interest and is not always available |
Real spot–perp spreads on large coins
| Coin | Spot, bid / ask | Perp, bid / ask | Perp vs spot | Perp funding per 8h |
|---|---|---|---|---|
| BTC | 77,302.49 / 77,302.50 | 77,266.7 / 77,266.8 | −0.046% | +0.0100% |
| ETH | 2,243.44 / 2,243.45 | 2,241.97 / 2,241.98 | −0.066% | −0.0112% |
On BTC and ETH the perp and spot differ by hundredths of a percent — less than the fee for one trade. Here a spot–perp setup only works through funding and on large amounts. Spreads of a percent and more appear on illiquid coins, and all the risks from lesson 4 apply there.
Hedging coins you already hold
If you hold a coin and do not want to sell it — because of taxes, a long-term plan or because it is locked in staking — but worry about a drop, open a short perp for the same number of coins. The position becomes neutral: a falling coin price is offset by the short’s profit, and a rise the other way round. While the hedge is open, you receive funding at a positive rate and pay at a negative one. The short needs margin: in a strong rally you will have to top it up, even though your spot coins are gaining value at the same time.
Frequently asked questions
Why is spot + futures better than perp + perp?
The spot leg pays no funding and cannot be liquidated, and its price is the basis of the index the perp is pulled toward. The downside is that you need capital to buy spot in full.
What is Futures + Spot and who is it for?
A long perp where it is cheaper and selling spot where it is pricier. It is easiest for those who already hold the coin: price exposure does not change while the price gap is captured. Short-selling a borrowed coin is harder and costs interest.
How do I hedge my coins with futures?
Open a short perp for the same number of coins. A price drop is offset by the short’s profit. Watch funding (at a negative rate the short pays) and the short’s margin when the price rises.
Why is there almost no spot–perp spread on BTC?
Large coins are traded by thousands of participants and algorithms that instantly align prices. The spread there is hundredths of a percent, less than the fee for one trade.
Sources
- 1.P2P.Army: futures screener — spot and futuresP2P.Army10/31/2026official
- 2.Binance Fee ScheduleBinance
- 3.Binance Futures Fee Structure & Fee CalculationsBinance5/1/2026
- 4.P2P.Army: funding rate arbitrage scannerP2P.Army10/31/2026
About the author
Crypto expert, arbitrage trader and investor
Crypto expert and hands-on crypto arbitrage trader, investor and software developer with over 20 years of experience. On the P2P.Army blog he covers exchange news, P2P and cross-exchange arbitrage.
- Crypto arbitrage
- P2P arbitrage
- Cross-exchange arbitrage
- Crypto exchanges
- Investing
- Software development
