The occurrence of premium and premium is influenced by factors such as supply and demand changes and reserve policies. When the market is weak, the futures price is often higher than the spot price. Then there will be a premium phenomenon, and vice versa.
The arbitrage method of raising premium is to buy materials and sell futures at the same time; Sell materials with premium and buy futures at the same time. This method has great application value in industries with large market cycle fluctuations, such as energy and steel industries.
Premium and premium have wide application value in modern commodity market. In addition to arbitrage gains, it can also provide market reference. Price fluctuation can also make investors follow the trend of price rise and fall when buying and selling, and then choose the best trading opportunity.
In the field of raw materials and commodity trading, the changes of premium and discount also reflect the changes of actual market demand to some extent, such as the expansion of scale and the reduction of imports. At the same time, it also provides basic pricing and decision-making basis for spot and futures trading.
Although premium and discount strategies can bring better risk arbitrage effect, some details need to be paid attention to in the investment process. For example, we need to pay attention to the changes in the actual demand and inventory of commodities and the changes in the relationship between supply and demand in the market. In addition, different analysis methods and trading methods should be adopted according to different commodity trading strategies. It is an important prerequisite for investors to observe and analyze the trend of premium and discount and grasp the market changes. At the same time, it is also a necessary reference to ensure the safety of funds and obtain rich returns.