Implementation method of cross-month arbitrage:

Bull gap: When the market supply is insufficient and the demand is strong, the contract price in recent months will increase more than that in the long term, or the contract price in recent months will decrease less than that in the long term. Whether in the forward market or the reverse market, in this case, it is more likely to buy the contract in recent months, sell the contract in the long term and make arbitrage profits.

Bear market arbitrage: When the market supply exceeds demand and the demand is relatively insufficient, generally speaking, the contract price in recent months often drops more than in the future, or the contract price in recent months rises less than that in the far months. Whether it is a forward market or a reverse market, in this case, it is more likely to sell contracts in recent months and buy contracts in longer months for arbitrage.

Butterfly arbitrage: it is an intertemporal arbitrage combination that enjoys bull spread and bear market arbitrage in the intermediate delivery month. Specific operation method: buy (or sell) the latest monthly contract, sell (or buy) the mid-month contract and buy (or sell) the forward monthly contract at the same time.

If you are not clear, please call me.