Derivative product is a financial contract relative to the original product, and its value depends on one or more basic assets or indexes. The basic types of contracts include forwards, futures, swaps and options, and derivatives also include structured financial instruments with one or more characteristics of forwards, futures, swaps and options.

Hedging arbitrage generally refers to the trading behavior that futures market participants use the price difference between different months, different markets and different commodities to buy and sell two different types of futures contracts at the same time to obtain risk profits from them. It is a special way of futures speculation, which enriches and develops the content of futures speculation, making futures speculation not only limited to the horizontal change of the absolute price of futures contracts, but also turned to the horizontal change of the relative price of futures contracts. (Source: State Street Investment)