Futures arbitrage trading refers to buying and selling two different types of futures contracts at the same time. When traders buy what they think is a low price contract and then sell it at a high price, that is, they buy strongly and sell weakly. When the profit and loss of both orders are overall profits, we can profit from the price change relationship of the two contracts. In arbitrage trading, traders are concerned about the spread between contracts, not the absolute price level.
Arbitrage can be divided into three categories: intertemporal arbitrage, cross-market arbitrage and cross-commodity arbitrage. The first kind of intertemporal arbitrage: the most common arbitrage transaction refers to the trading behavior of making profits through trading when the normal price difference between different delivery months of the same commodity changes abnormally. Make contracts of the same variety and different months to achieve profit targets.