What is fund arbitrage?

the so-called arbitrage means that lof and graded funds can buy from the market, sell off the market, or vice versa because of the different transaction prices between the market and the market, so as to earn the difference. How does the fund arbitrage?

Apply for an account

The subscription and redemption in the primary market are connected with the fund company, so you need to open a fund account in the securities business hall first;

redemption in the secondary market is conducted through stock accounts, and a brokerage account is required.

after that, LOF funds that can carry out arbitrage operations are screened, focusing on turnover and premium rate, giving priority to turnover. The more turnover, the better. People like to buy, and it is easier for us to sell.

The greater the absolute value of the discount/premium ratio, the better. It is the basic requirement to be larger than the handling fee.