Current location - Trademark Inquiry Complete Network - Futures platform - What are the types of intertemporal arbitrage?
What are the types of intertemporal arbitrage?
1. Niusan: The essence is to use the price changes for many months to make profits;

2. Bear market arbitrage: the essence is to profit from the contract price changes in different months;

3. Butterfly hedging: in essence, it is based on arbitrage activities across delivery months;

4. Cross-crop annual arbitrage: it is essentially an arbitrage transaction of futures contracts.

Characteristics of butterfly arbitrage

1. The highlight of butterfly arbitrage is the arbitrage activity of similar goods with different monthly spreads;

2. Butterfly arbitrage is an arbitrage way to buy and sell short positions;

3. Butterfly arbitrage is the center of two months, and the number of contracts in the middle month is the sum of the number of contracts before and after that month;

To sum up, compared with other intertemporal arbitrage methods, the specific price difference of the same commodity in different delivery months is unreasonable. The difference between butterfly arbitrage is the combination of bull market and bear market arbitrage. So in theory, butterfly arbitrage is an option strategy with relatively small risks and benefits.