1, different concepts.

Arbitrage is also called spread trading. Arbitrage refers to buying or selling an electronic trading contract while selling or buying another related contract. Arbitrage trading refers to trading in the opposite direction in related markets or related electronic contracts by taking advantage of the price difference changes between related markets or related electronic contracts, and making profits in the expectation of price difference changes.

Speculation refers to the trading behavior of using the price difference in the market to buy and sell and gain profits from it. Speculation can be divided into two areas: real economy speculation and virtual economy speculation, among which securities speculation has the richest connotation and the most complicated principle.

2. Different trading methods.

Speculative trading 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, short when the expected price falls, and trade in one direction at the same time. 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.

3. Different sources of profit

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. Investors are concerned about the rise and fall of the price of a single futures contract, while arbitrageurs are not concerned about the absolute price of futures contracts. Second, they are concerned about the price difference between related contracts or futures and spot.

4. The degree of risk is different.

Speculation bears the risk of price change of a single futures contract, while arbitrage bears the risk of price difference change. Because of the consistency of the price fluctuation direction of related futures contracts, the spread is generally smaller than that of a single futures contract, that is, arbitrage trading bears less risk than speculative trading.