< p > strong > a href= "http://sjfzxm.com/news/index_cj.as" > arbitrage paction < /a > meaning: < /strong > /p >

< p > arbitrage is a way of buying a futures contract while selling another different futures contract.

Futures contracts here can be different delivery months for the same futures variety.

It can also be interrelated contracts of two different commodities.

It can also be the same commodity contract in different futures markets.

Arbitrage traders also do more on one futures contract while shorting on another futures contract.

There is little correlation with the absolute price level through profit spread between the two contracts.

Arbitrage trading has become a major means of paction in the international financial market. Because of its stable income and relatively small risk, most of the large international funds mainly use arbitrage or partial arbitrage to participate in futures or options market pactions.

With the standardized development of China's futures market and diversification of listed varieties, the market contains a lot of arbitrage trading opportunities.

Arbitrage trading has become an effective means for some large organizations to participate in the futures market.

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< p > when carrying on arbitrage paction, < a href= "http://sjfzxm.com/news/index_s.asp" > investment < /a > are concerned about the price relationship between contracts, not the absolute price level.

Investors buy contracts that think the price is undervalued by the market, while selling contracts that think the price is overvalued by the market.

If the price change direction is consistent with the original forecast [1], that is, the higher the price of the purchase contract and the lower the price of the selling contract, the investor can profit from the change in the relationship between the two contract prices.

On the contrary, investors lose.

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< p > < strong > > a href= "http://sjfzxm.com/news/index_c.asp" > arbitrage classification < /a > /strong > /p >

< p > < strong > arbitrage pactions can be divided into two types: < /strong > < /p >.

< p > one is the current arbitrage, that is, arbitrage between futures and spot; < /p >

< p > two is the arbitrage of the price difference between different futures markets, between different varieties and between different markets. It is called spread trading.

According to the different operation objects, spread trading can be divided into three types: intertemporal arbitrage, cross species arbitrage and cross market arbitrage.

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< p > > current arbitrage < /p >

< p > > intertemporal arbitrage < /p >

< p > according to the different trading positions established by traders in the market, intertemporal arbitrage can be divided into: < /p >

< p > bull market arbitrage < /p >

< p > bear market arbitrage < /p >

< p > butterfly arbitrage < /p >

< p > vulture arbitrage < /p >

< p > > cross market arbitrage < /p >

< p > cross variety arbitrage < /p >