Butterfly arbitrage is a synthetic form of arbitrage trading, involving three contracts. Three kinds of contracts in futures arbitrage are short-term contracts, long-term contracts and longer-term contracts, which we call near-end contracts, mid-range contracts and far-end contracts. Butterfly arbitrage has no opening in the net position. In the position arrangement, the method of 1 near-end contract: 2 middle contract: 1 far-end contract is adopted. Among them, the direction of the near contract and the far contract is the same, while the direction of the intermediate contract is opposite to them. In this way, the whole arbitrage consists of a positive arbitrage and a negative arbitrage. As for whether it is located in front or in front, it is decided by the specific situation at that time. For example, an investor enters the market in late June of 10 and carries out 3-5-7 arbitrage. The spread is 20 points. The specific direction is to buy 1 in March, sell in February in May and buy 1 in July. Due to the scarcity of contract transactions in July at that time, 10 was hard to find, and the spread of 10 rose to 400 points in early October. However, the spread of165438+1October 20 quickly dropped from 400 points to 0, which was caused by long-term compensatory growth. This opportunity should not be missed. I quickly raised the price. I got 20 lots this time, with a total position of *** 150 tons. Finally, 65438+450 on February 8 closed the position and made a profit.