1 futures spread arbitrage behavior is helpful to form a reasonable spread relationship between different futures contract prices.
Futures spread trading's profit comes from the discovery and utilization of unreasonable spreads, from which it will always pay attention to market trends. If the price difference between related futures contracts is found to be abnormal and deviates from the normal proportion, profits will be made through arbitrage trading.
The arbitrage operation of futures spread is helpful to improve the liquidity of the market.
Futures spread arbitrage trading can objectively expand the trading volume of futures market, bear the risk of price changes and improve the activity of futures trading. But also help other traders to enter and exit normally and hedgers to operate smoothly, thus effectively reducing market risks (such as default risk), promoting smooth trading and price rationality, and playing the role of market shock absorber and lubricant.
To sum up, futures spread arbitrage can play an important role in the stable development of the futures market. Therefore, there will be no prohibition within the scope of the futures exchange and speculators' own risk tolerance.