Eth trade digital currency move brick arbitrage
take an example from life: luxury goods are sold at different prices in different stores. Korean stores sell cheaper than Beijing stores. We buy luxury goods in Korea and then sell them in China to earn a difference. This is the simplest way to move bricks
take BTC as an example. On March 22, 2020, the price of BTC is 6150.39 USD on the bithumb platform and 6259.10 USD on the coinviva exchange platform, with a price difference of. It means that if you buy a BTC in bithumb and sell it on coinviva, you can earn 109usd, about 770 yuan. Recently, the market price fluctuates greatly, forming a large arbitrage space, and the highest arbitrage space can reach 10%. At the same time, please choose a formal trading platform to control the risk.
In a broad sense, arbitrage is a way of making profits in the capital market, which has a broad meaning. Here we briefly discuss the futures arbitrage. In fact, the best way to understand futures arbitrage is to download tonghuashun futures link , and feel through the simulation disk
futures arbitrage refers to the use of the price difference changes between the relevant markets or contracts, Reverse trading in a related market or contract in order to make profits when the spread changes favorably
There are three arbitrage strategies:first, the current arbitrage
the current arbitrage refers to the reverse operation of spot and futures, which is widely used in interest rate futures and stock index futures markets. The arbitrager will buy or sell the existing goods in the spot market, sell or buy the futures contract of the asset in the same scale according to the same underlying asset in the futures market, and close the position at the same time in the future
In fact, because it takes a long time to buy and sell constituent stocks, and the market situation will change instantly, most people use computer programs to trade automatically in practice. In other words, once the parity relationship between index spot and futures is broken, the computer will carry out arbitrage trading according to the pre-designed programSecond, intertemporal arbitrage
intertemporal arbitrage is usually carried out between futures of the same futures variety with different maturities. Specifically, it refers to buying or selling a short-term financial futures, selling or buying another long-term financial futures with the same underlying assets, and hedging the two futures at or before the expiration of the short-term financial futures contract
compared with current arbitrage, intertemporal arbitrage has less restrictions. Intertemporal arbitrage is carried out in the same market, but there is no short selling restriction in the futures market. Therefore, intertemporal arbitrage is a widely used arbitrage strategy. The index of intertemporal arbitrage is basis. When the basis of different futures contracts based on the same underlying asset exceeds the normal range, risk-free profit can be obtained through intertemporal arbitrage
Third, cross market arbitrage is mainly carried out in the forward foreign exchange market, which is widely used in currency futures. Trading financial futures contracts of one exchange, trading the same number of financial futures contracts of the same term of another exchange, and hedging in the futurethe BTC in the currency trading account can be exchanged through BTC / BCH trading pairs in the trading interface, that is, BTC can be used to buy BCH.