Unilateral transaction: refers to the buyer's market or the seller's market at the same time. Normal transactions in the market should have active transactions between buyers and sellers, but in a certain period of time or a certain area, it is abnormal, making the market suddenly become an all-buyer's market or an all-seller's market.

Arbitrage transaction: refers to foreign exchange transactions in which funds are transferred from countries or regions with lower interest rates to countries or regions with higher interest rates by taking advantage of the differences in short-term interest rates in different countries or regions, so as to obtain spread income.

The main characteristics of unilateral transactions:

1. Under unilateral trading, you can only buy up to make money (long) or buy down to make money (short).

2. China A-share market is a unilateral transaction, that is, one-way transaction, that is, it can only buy up and make money (make more money).

The main characteristics of arbitrage trading:

1. The risk is lower: the price difference between different futures contracts is far less drastic than the absolute price level, thus reducing the risk accordingly. In particular, the risk of unexpected events affecting the disk surface is avoided. Due to bilateral positions, it is difficult for the main institutions to force arbitrage traders to reduce their positions.

2. Facilitating the entry and exit of large funds: Arbitrage itself requires a lot of funds, so it can attract large funds to enter the market.

Extended data

Disadvantages of arbitrage trading:

1. Risk: The risk comes from: the price deviation continues to deviate. The strong-weak relationship between contracts tends to maintain the trend of "the strong will be strong and the weak will be weak" in the short term. If this price deviation is finally corrected, the arbitrageur will have to suffer temporary losses in this transaction.

2. Limited: When the risks in the transaction are limited, the potential benefits are usually limited. However, whether to choose arbitrage trading in the end depends on many advantages and limited potential benefits of arbitrage.

3. Under normal circumstances, the price difference between contracts participating in arbitrage trading is far less than the price change of a single contract, which is a trading method with low risk and stable income. Therefore, arbitrage trading is mainly the investment choice of traders with large amount of funds or stable style.

reference data

Baidu Encyclopedia-Unilateral Trading

Baidu encyclopedia-arbitrage trading