Different trading methods
Futures speculation is to establish a long or short position on a single futures contract for a period of time, that is, to go long when the expected price rises and short when the expected price falls, and it is also a one-way transaction. Arbitrage trading is to establish long and short positions between related futures contracts or between futures and spot at the same time, and it is also a two-way transaction.
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Different sources of profit
Futures speculation is to profit from the fluctuation of the price of a single futures contract, while arbitrage is to profit from the relative price difference between related futures contracts or futures and spot. Futures speculators are concerned about the price rise and fall of a single futures contract, while arbitrageurs are not concerned about the absolute price of futures contracts, but the price difference between related contracts or futures and spot.
Take different risks.
Futures speculation bears the risk of price change of a single futures contract, while arbitrage bears the risk of price difference change. Because the prices of related futures contracts change in the same direction (in spot arbitrage, futures prices and spot prices also change in the same direction), the fluctuation range of price difference is generally smaller than that of a single futures contract, that is, arbitrage trading is less risky than speculative exchange.
Different transaction costs
Because the risk of arbitrageurs in trading is relatively small, while the risk of speculators in trading is relatively large, internationally, in order to encourage arbitrage trading, futures exchanges usually charge lower margin for arbitrage trading and higher margin for speculative trading.