1), the price is stable. The price relationship is relatively stable only in a certain time and space, and this stability is based on certain realistic conditions. Once this condition is broken, the changes of external factors such as tax rate, exchange rate, trade quota, ocean transportation cost and production technology level may lead to the lack of "regression" after the price difference deviates from the average.
2) Market risk. Market risk mainly refers to the abnormal fluctuation of arbitrage contract price in a specific market environment or time range. If arbitrage traders in this market situation can't take relative measures in time, in the process of implementing measures to resolve market risks, there may be profitable positions forced to be closed, leaving loss-making one-way positions, which will lead to the failure of the whole arbitrage.
3. Credit risk. Because China prohibits unauthorized overseas futures trading, most enterprises can only conduct off-site operations in various flexible ways through small-scale agencies registered in Hong Kong or Singapore, which has certain credit risks.
4) Time exposure risk. Due to the time difference between internal and external market transactions, it is difficult to place orders at the same time, which will inevitably lead to the problem of time exposure and increase the operational risk of cross-market arbitrage.
5) Policy risk. Policy risk, or systemic risk, refers to the adjustment of import and export policies of related commodities and the drastic changes of tax policies such as tariffs, which may lead to major changes in the conditions of cross-market arbitrage, thus affecting the final effect of arbitrage.