• OKX automates execution of the "funding rate arbitrage" strategy.

• The new offering allows traders of varied experience levels to maximized returns, OKX said.

OKX, the world's third-largest crypto exchange by trading volume, announced a new automated execution facility for the bi-legged crypto arbitrage strategy, opening doors for retail investors to maximize returns.

The latest update allows eligible users of OKX's Arbitrage bot to bypass complexities involved in the simultaneously placing opposing positions in spot and perpetual futures. Traders use this method to from pricing discrepancies between the two markets, the press release shared with CoinDesk said.

The placement of these positions in markets tied to bitcoin (BTC) and several other cryptocurrencies is now automated through built-in AI, making the otherwise sophisticated strategy accessible to traders with varied levels of experience.

The market-neutral strategy has been quite popular among sophisticated traders since at least the 2020 bull run. The typical trade involves buying the cryptocurrency in the spot market and selling perpetual futures contracts when the latter trades at a premium to the spot price. That way, the arbitrageurs collect the funding fee from holders of long (bullish) perpetual positions while bypassing price volatility risks. The strategy has previously offered annualized returns of over 20% during price uptrends.