1, cross-species arbitrage can only be carried out through two products with obviously strong price difference correlation. Before crossing varieties, we should first study the correlation between varieties. In addition to ordinary commodity trading, we can also carry out arbitrage trading. There are basically two kinds: spot arbitrage and intertemporal arbitrage. There are three ways of futures arbitrage, namely inter-period arbitrage, cross-market arbitrage and cross-variety arbitrage. These two products are generally highly substitutable or complementary in use, and generally have a relatively fixed price difference.
2. In arbitrage trading, traders are concerned about the relative price of the contract, not the absolute price level. When the price difference is higher than the fluctuation range, many a mickle makes a muckle. When the spread is below the range, shorting should be low and shorting should be high. When the spread is restored to a reasonable range and the position is closed at the same time, the income can be generated. Through the analysis of the spread, investors can find a reasonable spread range, and they can operate beyond the reasonable spread range.
3. Usually, two or three transactions cannot be strictly completed, and at the same time, some arbitrage portfolio transactions and price fluctuations may be exposed. The possibility of withdrawing orders cannot guarantee the price that will be profitable; Because arbitrage involves the future delivery of funds, there is a risk that the counterparty will default and cannot pay the funds; Another risk of arbitrage trading comes from the simultaneous failure of the price relationship between buyers and sellers.
The principle of arbitrage is that two contracts have a good correlation, and then a loophole suddenly appears in the market, which destroys the balance between the two contracts. Investors enter the market for arbitrage, wait for the market to pick up, and then close their positions. This is the concept of average income. Arbitrage strategies generally include time arbitrage, cross-time arbitrage, cross-market arbitrage and cross-product arbitrage. Selling short-term delivery monthly contracts and buying forward delivery monthly contracts, it is expected that the forward price will fall less than the recent price.