How do steel trade enterprises arbitrage through futures
There is a price difference between futures and spot, which is called basis. The basis is generally stable in an interval, such as 300-500. When the futures market fluctuates greatly in a certain period of time, resulting in the basis deviation from the interval, the corresponding futures and cash combination operation can be carried out. The expectation of this operation is that the basis will return to a stable range, which is arbitrage.