This is called cross-market arbitrage.

Although there are some differences between the contract target of Shanghai crude oil and the target of American crude oil, the similarity is dominant and the difference can be ignored, especially in the current situation of huge price difference.

However, when you operate, you will see that your Shanghai order cannot be closed, because when the market view is consistent and completely convergent, the liquidity will be exhausted. There are no buyers in the audience.

At this time, the disadvantage of not opening the night market has contributed to the lack of market liquidity.

Whoever makes a deal is equivalent to winning the lottery, and it is possible to win several tickets on the runway soon.

So short opportunities are hard to cash. Long-term fluctuations are uncertain, ha.

However, you are absolutely right. If you open a position successfully, you will find opportunities when the spread shrinks. You have completed an arbitrage transaction.

Strictly speaking, you need to buy the same amount of crude oil futures in the American market while trading in Shanghai, and the positions in the two markets are at the same time flat. This is textbook arbitrage.

Arbitrage pays attention to opening positions in both directions at the same time, and closing positions is to lock the spread, focusing on locking. No matter how the two markets interpret it in the next step, when the price difference narrows, they can all make a profit.