1. When the secondary market transaction price of LOF fund exceeds the net value of the fund, it is hereinafter referred to as Class A arbitrage. LOF fund has two prices: the secondary market transaction price and the net value of the fund. LOF fund secondary market transaction price, like the stock secondary market transaction price, is the price generated by investors buying and selling each other. The net value of LOF fund is the actual value formed by fund management companies after using the raised funds to buy stocks, bonds and other financial instruments. The trading price fluctuates continuously during the trading hours of a day, and the net value of the fund is calculated by the fund management company according to the closing prices of stocks and bonds on that day after the market closes every day. There is only one net worth a day.

when the transaction price in the secondary market of LOF fund exceeds the net value of the fund, and the difference is larger than the transaction cost (1.5% of the general subscription fee+.3% of the transaction cost in the secondary market), then class a arbitrage opportunities appear.

Specific operation:

1) Enter the fund account of the relevant securities firm (the account must be linked with the Shenzhen shareholder card), select "On-site fund redemption" under the stock trading item, enter the LOF fund code, and then click "Purchase" and the purchase amount to complete the fund subscription;

2) On trading day T+2, the fund share will reach the customer's account. In other words, if there is no rest day in the LOF fund you subscribed for on Monday, the share will be paid to your account on Wednesday;

3) From the day when the subscription (including subscription) share reaches your account, on any day, as long as the market price is greater than the net value by more than the arbitrage transaction fee (generally, this fee =1.5% subscription fee +.3% transaction fee =1.8%), the risk-free arbitrage opportunity will appear.

for example, if you purchase at the net value of 1 yuan, and the secondary market price is above 1.18 yuan, for example, the price is 1.4 yuan, then you sell it at 1.4 yuan. After deducting the transaction cost of .18 yuan, the profit will be 1.4-1.18=.22 yuan, with a yield of 2.2%.

the above is a class a arbitrage process.

2. when the transaction price in the secondary market of LOF fund is lower than the net value of the fund (this situation often appears in a bear market or a falling market. ), hereinafter referred to as class B arbitrage.

when the transaction price in the secondary market of LOF fund is lower than the net value of the fund, and the difference is larger than the transaction cost (in general, the cost = .3% of the transaction cost in the secondary market+.5% of the redemption cost = .8%), then class b arbitrage opportunities appear.

Specific operation:

1) Enter the fund account of the relevant securities firm (the account must be linked with the Shenzhen shareholder card), select the stock transaction, and enter the fund code (note: the "on-site fund redemption" is not entered here) to buy. This process is called LOF secondary market buying, just like buying and selling closed-end funds.

2) The LOF fund shares you bought in the secondary market will reach your account on the second day (T+1). From this day on, on any day, when the transaction price of the LOF fund in the secondary market is lower than the net value of the fund, and the difference is larger than the transaction cost (generally, .8%), then you can apply for redemption in the "on-site fund" under the stock trading project.

For example, on the first day, 1. yuan bought LOF fund in the secondary market, and it can be redeemed on the second day. At the time of redemption, the net value of the fund on that day was 1.4 yuan, so after deducting the transaction fee of .8 yuan, the profit was .32 yuan, and the yield reached 3.2%.

(The above is the B-type arbitrage process)