Because there are some differences between the factors that affect the futures market price and the spot market price, arbitrageurs will always pay attention to the market trends, find abnormal price relationships, and arbitrage at any time by using the price difference between different futures contract prices or the price changes between the futures market and the spot market. Their trading results objectively make all kinds of price relationships in the futures market tend to be normal and promote the formation of fair market prices.
2. Arbitrage helps to improve market liquidity.
The existence of arbitrage behavior increases the trading volume of futures market, bears the risk of price changes, eliminates market monopoly, improves the activity of futures trading, ensures the normal entry and exit of traders and the smooth realization of hedging operation, effectively reduces market risks, promotes the stability of trading and the rationalization of prices, and plays the role of market lubricant and shock absorber.
The delivery month is a good opportunity for us to arbitrage. If we change positions unilaterally, our price difference will fluctuate more, which will be much better than usual. There will be fluctuations and profit margins, and we will do more.