What does arbitrage profit mean? What is arbitrage? How exactly is it achieved? What is the operation method? The following is the arbitrage profit brought to you by Bian Xiao. I hope I can help you.
How much arbitrage profit is appropriate to close the position?
In the securities market, investors are often trapped by the market. In fact, investors can occasionally set up a set of markets, such as futures arbitrage, arbitrage and intertemporal arbitrage. Arbitrage, also known as spread trading, refers to the investment method of buying a futures contract, selling another contract with high correlation and equal quantity, and closing the position at the same time in the future to obtain the spread.
Arbitrage can also be carried out between different markets and different varieties, that is, cross-market arbitrage and cross-variety arbitrage. Cross-market arbitrage Refers to the arbitrage of the same variety between different exchanges. For example, both the London Metal Exchange and the Shanghai Futures Exchange have the same futures trading. When the copper price in London is lower than that in Shanghai, traders can buy copper in London and sell copper in Shanghai at the same time, and then close their positions at the same time when the price relationship between the two markets returns to normal, thus making a profit.
As for cross-variety arbitrage, it refers to the arbitrage between two highly related varieties, which are either highly substitutable varieties, such as soybean oil, palm oil and rapeseed oil, or varieties restricted by the same supply and demand factors, such as black coking coal and coke. As a special way of speculation, the role of arbitrage in the futures market is mainly reflected in providing opportunities for futures investors to hedge risks, increasing the liquidity and activity of the futures market, and at the same time, the distorted market price returns to normal, which is conducive to the function of price discovery. Finally, let me remind you that arbitrage is also risky. If the price changes in a different direction than you originally predicted, there may be losses, but the losses are usually controlled within a certain range.
Should stocks cover their positions when they fall?
If there is a correction of individual stocks due to other circumstances such as market conditions, and there is a greater chance that the stock price will rebound later, investors can make up their positions when individual stocks fall. If the performance of individual stocks is not good, or even thunderstorms occur, which leads to the continuous decline of individual stocks and hopeless rebound, investors can choose to wait and see.
When the stock falls, make up the position by combining the following two points:
1, timing of covering positions
In the process of falling, stocks will be supported by some important support positions, and investors can make up their positions at these support positions appropriately. For example, the stock price is supported by the 60-day moving average, or the stock price is supported by the previous low.
2. Fund management
In the process of stock decline, investors should make up their positions in batches and never buy them all at once. You can take:
The funnel-shaped position management method is used to make up the position, that is, the proportion of making up the position increases every time; The pyramid-shaped position management method is used to make up the position, that is, the proportion of positions for each time is getting smaller and smaller; The rectangular position management method is used to cover positions, that is, the position ratio of each covered position is fixed.
What does the main stock market mean?
The main force of the stock market refers to investors with strong financial strength and certain control over stock price fluctuations. The main force is the main force in a stock, which is usually used to represent the banker.
The main force and the banker have great similarities, and relatively speaking, the banker's strength may be stronger. A stock can have multiple main players, either individual investors or institutional investors. As long as you have enough chips, you can influence the trend of a stock and guide the stock price to run in a certain direction. Investors with certain ability to manipulate the stock price can become the main force.
Of course, the main force may not be a single force, but a combination of various financial forces. The main fund is abundant, there are many chips in hand, the strength is strong, the professionalism is high, there are many channels to obtain information, the operating software is more efficient and convenient, and the investment level is higher.
Foreign exchange pending order transaction risk
1, market unpredictability is market unpredictability first. In fact, any investment market is unpredictable, but foreign exchange investment is worse than other investments.
The market fluctuates greatly. Secondly, among the risk factors that should be paid attention to in foreign exchange trading, there is also a point that the market fluctuates greatly.
There are risks in online trading, and then there is the problem of online trading. Although the security of online transactions has improved, many foreign exchange trading platforms will also ensure the safety of investors' funds, but there are many unreliable places in online trading platforms, and most of them are caused by the development trend of the Internet, which cannot be easily adjusted.
What are the types of foreign exchange pending orders?
Buy stop loss: buy stop loss, pay above the current price, and break through the pursuit of orders, that is, pending orders chase up above the current price; Sellstop: sell stop, that is, to place orders below the current price, to break through the chase, that is, to place orders below the current price, and to do more on dips, that is, to place orders above the current price, and to short on rallies, that is, to place orders above the current price.