Question 2: What is hedge arbitrage? The so-called hedging refers to buying up and down at the same price. Whether it goes up or down, there will be no loss, only the handling fee will be deducted.
Question 3: Hedging arbitrage 1. What is arbitrage? What is hedging? Arbitrage usually refers to buying a physical asset or financial asset at a lower price, and selling it at a higher price when it has two prices (in the same market or different markets), so as to obtain risk-free income. Arbitrage refers to the act of making profits by correcting the abnormal situation of market price or yield. Abnormal situation usually refers to the behavior that the price of the same product is significantly different in different markets, that is, arbitrage means buying low and selling high, which leads to the price returning to equilibrium level. Arbitrage usually involves establishing a position in one market or financial instrument and then establishing a position in another market or financial instrument to offset the previous position. After the price returns to the equilibrium level, you can close your position and take profit. Hedging means that one investment deliberately reduces the risk of another investment. This is a way to reduce business risks while still making profits from investment. General hedging is to conduct two transactions at the same time, both related to the market, in the opposite direction, with the same amount and breakeven. Market correlation refers to the identity of market supply and demand that affects the prices of two commodities. If the relationship between supply and demand changes, it will affect the prices of two commodities at the same time, and the prices will change in the same direction. The opposite direction means that the buying and selling directions of two transactions are opposite, so that no matter which direction the price changes, there is always a profit and a loss. Of course, in order to protect the capital, the number of two transactions must be determined according to the range of their respective price changes, so that the number is roughly the same. Second, what is the difference between arbitrage and hedging? By definition, arbitrage and hedging belong to the nature of "buying strong and discarding weak". The scope of hedging is wider. In a sense, arbitrage is also a hedge. Arbitrage is more about "correcting the inherent mistakes and irrationality of the market and making it return to rationality". Often similar to "contrarian" trading, it is generally required that arbitrage varieties have high correlation, that is, they rise and fall together and make relative profits. For example, recently, empty soybean oil has more palm oil, and soybean oil and palm oil have risen and fallen together, but palm oil has risen a lot, so arbitrage will make money. Aside from the arbitrage part, hedging is generally a transaction of buying strong and selling weak, which belongs to "homeopathic" transaction, and there is no correlation between varieties, only the strength of fluctuation is needed. For example, people who make more copper and empty cotton this year are hedging. Without high correlation, it is generally impossible to avoid systemic risk, that is, both varieties may earn or lose. 3. What is the function of arbitrage hedging? 1, which greatly reduces the risk and makes it almost risk-free. 2. It is conducive to promoting market perfection. 3. It is suitable for investors with low risk tolerance and large capital.
Question 4: What does the hedging arbitrage of spot gold mean? Arbitrage generally refers to the trading behavior that futures market participants use the price difference between different months, different markets and different commodities to buy and sell two different types of futures contracts at the same time to obtain risk profits from them. It is a special way of futures speculation, which enriches and develops the content of futures speculation, making futures speculation not only limited to the horizontal change of the absolute price of futures contracts, but also turned to the horizontal change of the relative price of futures contracts.
1. The form of arbitrage
(1) Period arbitrage: Period arbitrage refers to an operation mode in which the same member or investor establishes the same number of trading positions with opposite directions in different contract months of the same futures product for the purpose of earning the difference, and ends the trading by hedging or delivery. Intertemporal arbitrage is one of the most commonly used hedging profit transactions, which is divided into bull spread, bear market arbitrage and butterfly arbitrage in practice.
(2) Cross-market arbitrage: including arbitrage of the same commodity in different markets at home and abroad, spot market arbitrage, etc. ;
(3) Cross-commodity arbitrage: Arbitrage activities are mainly carried out by using the strength contrast differences between commodities with high correlation (such as substitutes, raw materials and downstream products).
2. Definition of hedging
There are many kinds of hedging, which is intended to be a two-way operation. Economic hedging is to achieve the purpose of hedging. Hedging in import and export trade means that importers and exporters buy foreign currency in the foreign exchange market in order to avoid direct or indirect economic losses caused by foreign currency appreciation, and the purchase amount is equivalent to the foreign currency they need to pay for imported goods; Futures hedging refers to the behavior that customers buy (sell) a futures contract and then sell (buy) a futures contract with the same delivery month as the original variety to offset the delivery spot. Its main point is that the months are the same, the directions are opposite, and the quantity is the same.
3. Hedging and arbitrage
Arbitrage is a common sense concept in modern financial or investment textbooks. From the point of view of traders, arbitrage refers to arbitrage of the price difference of homogeneous or strongly related trading varieties with different prices; Judging from the behavior of traders, arbitrage refers to buying and selling homogeneous or strongly related trading varieties in order to avoid systemic risks, which is hedging.
In fact, there is no difference in concept between the factual basis of hedging arbitrage and the "value return" path on which value investment depends, but there is an essential difference in the way of avoiding risks.
Question 5: In spot trading, what is AB warehouse hedging arbitrage? Official website introduced that Qianhai Rongheng Petroleum pec 178, the arbitrage method in precious metals is to act as an agent for two platforms, and place orders at the same time, with one buying up and the other buying down. Close the position at the same time after reaching the satisfaction point. This lost the handling fee. Hedging arbitrage simply means that there must be a price difference between the two varieties. Two-way operation, the only loss is the handling fee, and the profit is the price difference.
Question 6: The difference of hedging arbitrage is a common sense concept in modern finance or investment textbooks. From the point of view of traders, arbitrage refers to arbitrage of the price difference of homogeneous or strongly related trading varieties with different prices; Judging from the behavior of traders, arbitrage refers to buying and selling homogeneous or strongly related trading varieties in order to avoid systemic risks, which is hedging. In fact, there is no difference in concept between the factual basis of hedging arbitrage and the "value return" path on which value investment depends, but there is an essential difference in the way of avoiding risks.
Question 7: How to hedge arbitrage Hedging arbitrage means that you keep an eye on soybean meal and rapeseed meal at any time. When the price difference between them is reduced to below 400, find a technical low point to arbitrage and buy soybean meal and sell rapeseed meal!
Question 8: How to understand arbitrage and hedging? What is the difference between arbitrage and hedging? In finance, arbitrage is defined as the behavior of buying and selling or selling and buying the same or basically the same securities in two different markets at favorable prices at the same time.
Hedging means that one investment deliberately reduces the risk of another investment. This is a way to reduce business risks while still making profits from investment.
Arbitrage is an active use of opportunities in the mechanism to grab profits, while hedging is more about controlling risks.
Question 9: What is the hedging arbitrage of warehouse 9:AB? The way of hedge arbitrage of AB warehouse refers to two trading platforms, each with a customer account number, or with a customer account number in the background trading system of two different comprehensive members on the same trading platform. These two customers place orders at the same time, and the price is the same or basically the same. One establishes warehouse A to buy up, and the other establishes warehouse B to buy down, and then closes the position at the same time to make profits.
How do you make money like this? First of all, the agent's platform must be a platform for anti-warehouse or donation, and the fluctuation range should be large enough. Lossy platforms can gain losses (according to the size of positions), and the position handling fee = profit.
Question 10: How to operate risk-free hedging arbitrage? The so-called risk-free hedging arbitrage transaction is to hedge the risk. On the one hand, we can use the characteristics of different platforms, such as trading with gifts or positions, on the other hand, we can use the relationship between the strengths and weaknesses of trading varieties to deviate from the indicators. In short, if you choose low-risk arbitrage trading, you can live longer in the market. If you are interested, you can add a skirt 76I5I67I.