Arbitrage trading has the following characteristics compared with ordinary speculative trading:
1, low risk. The spread of different futures contracts is far less severe than the absolute price level, which correspondingly reduces the risk, especially avoids the risk of unexpected events hitting the disk.
2. Facilitate the entry and exit of large funds. Arbitrage can attract a lot of money. Due to bilateral positions, it is difficult for the main institutions to force arbitrage traders to reduce their positions.
3. Long-term stable interest rates. The profit of arbitrage trading is not as ups and downs as unilateral speculation, and arbitrage trading is operated by using the unreasonable price difference relationship in the market. In most cases, the unreasonable spread will soon return to normal, so the success rate of arbitrage trading is very high.