The act of buying and selling to earn the price difference is all speculation. Because it was a purely planned economy at that time, all goods were controlled by the state, and all purchases and sales were unified. All private transactions to make money were illegal at the time and were targeted for crackdowns

The price difference refers to different grades and different prices. There are differences in futures prices in delivery months, different commodities, and different delivery locations. It also refers to the price difference of the same commodity due to different conditions, such as the price difference between wholesale and retail, regional price difference, and seasonal price difference. The difference between purchases and sales is a major part of some merchants' profits.

1. Basic Application

1. The price difference is sometimes expressed as a premium and sometimes as a discount. Hedging is a market trading method that uses the price difference between futures contracts to make profits. The key factor in arbitrage is the change in price difference.

2. The price difference will expand or shrink, but when the price difference between two futures contracts appears abnormal, it provides traders with arbitrage opportunities. The difference between prices is related to the amount of profit. The real difficulty for arbitrageurs is how to capture the biggest difference in prices under the same trend.

3. For cross-month arbitrageurs, when the price difference is greater than the holding cost, it is a good trading opportunity; for cross-market arbitrageurs, the factors that affect the price difference are transportation costs and each transaction The clearly defined variety and grade of commodities to be delivered; for cross-commodity arbitrageurs, it is necessary to understand the "normal" price difference relationship between the two related commodities in order to take advantage of the opportunity of higher or lower than the "normal" price difference. Arbitrage trade.

2. Accounting treatment

1. This account calculates the price difference income realized from buying and selling stocks.

2. Accounting principles for stock price difference income:

Stock price difference income should be recognized on the transaction date of selling stocks, and recorded as the difference between the total transaction amount of stocks sold and its cost and related expenses. .

3. Accounting processing of stock price difference income:

On the day when the stock is sold, the "Securities Liquidation Fund" account will be debited according to the securities liquidation amount that should be collected, and the "Securities Liquidation Fund" account will be debited according to the carry-forward For the stock investment cost, the "Stock Investment" account is credited, and the "Commission Payable" account is credited according to the brokerage commission payable, and the difference is credited or debited to this account.

4. This account should set up detailed accounts according to stock types for detailed accounting.

5. At the end of the period, all the balances of this account should be transferred to the "Income of the Current Period" account. After the transfer, there should be no balance in this account