On-site fund over-the-counter fund arbitrage refers to the time when the spread between on-site funds and over-the-counter funds is relatively large. For example, the on-site LOF price of a LOF fund is higher than the off-site LOF, and investors can buy it off-site and then transfer it to the custody market for sale. When the spot LOF price is lower than the OTC fund price, investors can buy in the OTC market and redeem it in the OTC market.

It should be noted that the only funds that can arbitrage are ETF funds and LOF funds, and other funds do not meet the arbitrage requirements.