2. The special trading mechanism of futures makes it respond to information very quickly, and investors can find the future trend of the spot market through arbitrage in the futures market, thus guiding their own spot market operations;
3. The high leverage of futures arbitrage magnifies the risks and benefits of investors. If futures arbitrage is used properly, investors can get more gains, otherwise, the losses will be even greater.
What do you mean short and long?
Short selling and long selling are mainly technical terms used in the financial trading market. Short selling refers to not optimistic about the future development of a stock or foreign exchange, thinking that it will fall, so sell it first, and then buy it after the price falls. Going long is the opposite of shorting. When the price is low, buy it first, and then sell it when the price rises. The China stock market is usually only allowed to be long, but the futures market can be short.