How to choose the variety arbitrage can be considered from the following aspects:

1, capital scale

Small capital scale and few varieties, such as corn, wheat and rice and their cross-varieties.

With large capital scale and strong anti-risk ability, you can consider making varieties with large fluctuations.

Such as sugar, pta, plastic, grease, glue, copper and other inter-temporal or inter-variety varieties.

2. Mobility of varieties

If it is mainly short-term and the amount of funds is large, in order to facilitate access, choose varieties with good liquidity. For example, pta, plastic trading is hot recently, which is convenient for large funds to enter and exit for arbitrage trading.

3. Market hotspots

It is beneficial to improve the efficiency of funds to look for arbitrage opportunities of fund varieties that are being speculated in the market recently.

4. Safety

Of course, the same two varieties, we choose the safer one.

For example, plastics and pta, 1 and May were the same as arbitrage, pta factory was repaired, bullish, and bulls actively intervened, while plastics and graphics were empty, and fundamental warehouse receipts were heavy, and long and short actively intervened. So pta is 1 greater than 5, and plastic is 1 greater than 5, which will be a little more comfortable. In other words, pta is safer than plastic if you do the reverse set.

5, the judgment of the potential space

This is generally used in the layout of funds. For example, the potential profit margin of A variety arbitrage is 30%, and B is 10%. Of course choose a.

6. Time value

Time is a good friend of arbitrageurs, so we must pay attention to it. The one with high time value is better than the one with low time value. After all, there is a lot of room for manoeuvre. Most people are speculative natural persons, not legal persons, so they can't enter the delivery month.