What is cross-market arbitrage?
Cross-market arbitrage is to buy and sell futures contracts in the same delivery month on two futures exchanges, taking advantage of possible geographical differences to make profits. Generally speaking, cross-market transactions can be conducted between domestic exchanges and exchanges in different countries. [ 1]? There are many types and quantities of national debt issued and traded in different markets in China financial market. Basically, every national debt can be listed and traded in the inter-bank market and the exchange market every year. However, there are not many kinds of treasury bonds that are actively traded in the exchange market, and cross-market arbitrage occurs from time to time, not frequently.
Cross-market arbitrage is classification.
From the consistency of trade direction and arbitrage direction, cross-market arbitrage can generally be divided into forward arbitrage and reverse arbitrage: if the trade direction and arbitrage direction are the same, it is called forward arbitrage; On the contrary, it is called reverse cross-market arbitrage. For example, domestic copper mainly depends on imports, while LME is long and short in Shanghai Stock Exchange, which is called positive arbitrage. The corresponding settlement methods include physical delivery liquidation and hedging liquidation. Generally speaking, forward arbitrage is a commonly used cross-market arbitrage, and reverse arbitrage has certain risks, so it is not recommended to use it frequently.
Generally speaking, the risk of cross-market arbitrage is relatively small and the profit is relatively stable. It is a futures investment method suitable for institutional investors with a certain capital scale and investors who pursue stable income.
On cross-market arbitrage goods
Shang Bo spot and futures cross-market arbitrage varieties (integrated stickers)
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abstract
If there is another way to make money steadily in the speculative market, I believe it is arbitrage!