How to buy and sell ETF premium arbitrage?
ETF arbitrage uses the relationship between ETF net value and transaction price to obtain income. When the transaction price in the secondary market is higher than the sum of net value and transaction cost, premium arbitrage can be carried out. The method is: buy index stocks-buy ETFs-sell ETFs-take more money and leave. The principle is actually very simple, but it is just buying at a low price and selling at a high price.
Of course, when the transaction price is lower than the difference between the net value and the transaction cost, discount arbitrage can also be carried out. The method of discount arbitrage is to buy ETF-cash-redeem stocks-sell stocks-take more money and leave.