Risk free arbitrage virtual currency
1. Generally, the securities trading of the announced merger and acquisition companies takes a long time interval, which may be as long as several months. In stock exchange M & A, risk arbitragers usually long the stock of the acquired company and short the stock of the acquired company; In cash M & A, risk arbitragers seek the difference between acquisition price and target company price
. 2. Futures arbitrage refers to the use of the relevant market or the price difference between the relevant contract changes, in the relevant market or the relevant contract to trade in the opposite direction, in order to make a profit in the favorable change of the price difference. If there is arbitrage by using the price difference between futures market and spot market, it is called cash arbitrage. If there is arbitrage using the price difference between different contracts in the futures market, it is called spread trading
3. Foreign exchange arbitrage: at present, the main popular arbitrage transaction in the market is actually a kind of arbitrage transaction. Carry refers to the use of foreign currency savings rate differences between currencies to earn higher interest income. They mainly buy high interest rate currencies and sell low interest rate currencies to earn overnight interest. The currencies used for buying are mainly Australian dollar and New Zealand dollar in high interest rate currencies, while the currencies sold are mainly Japanese yen and US dollar in low interest rate currencies
4. Credit card arbitrage: many people have credit cards, but they only know how to consume with credit cards, but they don't know that there is a huge arbitrage space for credit cards. In the early development process of P2P platform, credit card can be used directly for investment. There is a huge arbitrage spread. Of course, it is forbidden to use credit card directly now. But we can still use the interest free period of credit card loans for investment arbitrage
5. Virtual currency arbitrage: when many people know about bitcoin, the price of bitcoin once reached a high of 6000 yuan, and they have missed the best time for investment or speculation. However, the prices of various virtual currencies on bitcoin trading platforms are quite different, which gives arbitragers more arbitrage space
there are two kinds of arbitrage, one is risk-free arbitrage, such as the year when stock index futures are just listed. Why no risk? Because if the price difference does not return to reasonable, the profit after the hold to maturity delivery will still be zero. The other is statistically significant Arbitrage (such as statistical arbitrage based on Cointegration) and arbitrage based on fundamental analysis (such as instrial hedging). In fact, this kind of arbitrage has a high risk. Most of these transactions are not psychologically prepared for delivery, or can't lock in the risk through delivery at all, Once the black swan event in Statistics (some small probability events are not accidental), the risk is relatively high
therefore, the key to arbitrage is to conct in-depth research on yourself, understand the logic of the spread and the game when the spread changes.
There are four kinds of Futures Arbitrage: futures arbitrage, intertemporal arbitrage, cross market arbitrage and cross variety arbitrage
if you say risk-free arbitrage, on the premise of ensuring that you have the ability to deliver, futures arbitrage is the closest way to risk-free arbitrage. The remaining risk is just the risk of dealing with the realization of this result. For example, the risk of margin call of futures position, liquidity risk of position closing, etc
for the other arbitrage methods, the risk increases in turn, and the forward arbitrage & lt; Intertemporal arbitrage & lt; Cross market arbitrage & lt; Cross breed arbitrage
therefore, the so-called risk-free arbitrage still has risks, just the degree of relative risk
The essence ofis to speculate on the price difference. And futures arbitrage looks very simple, but in fact it still needs a certain degree of professionalism. Because we need to understand the nature of the price difference. If the price difference does not return one day, the result will be years of hard work
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Risk free arbitrage is mainly to buy high interest rate currency and sell low interest rate currency to earn overnight interest. In foreign exchange trading, carry trade makes use of such a basic economic principle that, driven by the economic law of supply and demand, capital will continuously flow into and out of different markets. Markets that provide the highest return on investment usually attract the most capital
for example, when the annual interest rate of China is 7% and that of the United States is 10%, and the one-year forward exchange rate of the United States is 4% lower than the spot exchange rate, we can borrow US dollars at 10% interest rate, convert them into RMB through the foreign exchange market, invest them in China, and sell forward RMB at the same time, then we can make a 1% risk-free net profit
most of the real foreign exchange arbitrage is done by banks, which requires higher professional knowledge and capital. Mainly using the swap technique. That is to say, in the same transaction, a spot business and a forward business will be done together, or a loan business will be done together in a business. It has an explosive fluctuation opportunity, but the time and price are not sure
extended data
the essence of risk-free arbitrage. Risk free arbitrage is a kind of financial instrument, which means to invest money in a group of foreign exchange, set forward exchange rate, obtain foreign exchange deposit income, exchange foreign exchange back to local currency according to the established exchange rate, so as to obtain income higher than domestic deposit interest rate. That is to say, arbitrage is carried out at the same time to maintain the value and lock in the exchange rate
because the root of arbitrage lies in the unbalanced pricing of different assets or the same asset in different time and space, the basic principle of supply and demand law determines that the price of undervalued assets will rise e to large-scale purchase, and the price of overvalued assets will fall e to large-scale sell-off. Of course, this balance is not absolute price consistency, but a relative price that loses arbitrage attraction after considering transaction cost
here are two ways to carry out risk-free arbitrage in kucoin Futures:
1, Because of the nature of the delivery contract itself, it will be delivered according to the actual bitcoin price on the delivery date, so the final price of the perpetual and the delivery contract will be almost the same.
we can arbitrage in this way that there is a price difference in the early stage and the price is the same in the later stage, The actual situation is that the perpetual price is 7300 dollars and the delivery contract price is 7482 dollars. We buy 100 contracts when the perpetual price is 7300 dollars and sell 100 contracts when the delivery contract is 7482 dollars, When the price difference between the interim delivery contract and the perpetual delivery contract is less than the initial price difference, we can carry out arbitrage for many times.
2. Double short interest arbitrage, risk-free 11% stable annualized income
when you hold BTC, you are bullish on BTC; When BTC falls by $3000, you will lose $3000. But you don't want to play BTC, you just want to make money with your RMB or US dollars, so you can double short bitcoin in kucoin futures. Double short bitcoin will never burst. At this time, the rise and fall of bitcoin has nothing to do with you, You don't need to have any relationship with bitcoin's data and market. Because the kucoin futures contract mechanism has a great probability that long users will give short users a small amount of interest every 8 hours, and the annualized stable income will be more than 10%.
note: you must take a position in the perpetual contract
in short, risk-free arbitrage refers to hedging while arbitraging, and locking the exchange rate, which is called risk-free arbitrage. The capital (usually currency) is invested in a group of foreign exchange, and the forward exchange rate is set. After obtaining the deposit income of foreign exchange, the foreign exchange is converted back to the local currency according to the established exchange rate, so as to obtain the income higher than the domestic deposit interest rate
for example, when the annual interest rate of China is 7% and that of the United States is 10%, and the one-year forward exchange rate of the United States is 4% lower than the spot exchange rate, we can borrow US dollars at 10% interest rate, convert them into RMB through the foreign exchange market, invest them in China, and sell forward RMB at the same time, then we can make a net profit of 1% without risk
the target of stock index futures is CSI 300 index. There is a certain price difference between the futures contract quotation and 300 index quotation of the current month. Due to the mandatory convergence of futures and spot on the delivery date, the current price difference on the maturity date should theoretically be zero. From a certain gap to zero, the price difference between them is arbitrage profit (theoretically)
specific operation:
assume that the price difference between futures and spot is 60 points in the current month, and sell the first-hand stock index futures contract at the same time, buy a package of stocks corresponding to the CSI 300 index (also can be replaced by ETF to calculate the correlation coefficient), until the delivery date, If the price difference between the futures and cash returns to zero (negative value may appear) and the position is closed, the risk-free profit can be obtained
for example, ABC three companies, a in China, B in Singapore and C in Hong Kong, a buys a certain amount of goods from B, preferably copper, etc., which is convenient for storage, then a sells the goods to C, B sells them to C, and so on. Because a is doing entrepot trade, BC are free trade countries and regions, so although there is logistics, there is no need to pay tax, tax barrier free, operational
a opens the L / C after purchasing the goods, B gets the L / C discount, and then gives it to C. when C takes the money, he purchases the goods from a. This is the flow of money. Because BC is a complete capital circulation area, the capital flow is convenient, without supervision, and the cost is very low. At the same time, because the buyer and seller of a are different regions and companies, domestic supervision is more difficult. Therefore, there is no obstacle in the flow of funds and it is operable
the main way of this operation is to set the bank interest margin, because the discount interest rate is lower than the loan interest rate, so a half year l / C can obtain a certain interest margin income after being discounted and loaned out. But this is not what ordinary people and institutions can operate. The joints and interest chains that need to be broken through are relatively long. Moreover, there are risks in the investment direction of the jacketed money
for example, for foreign currency loans of domestic banks, company a borrows US dollar loans from banks with RMB assets as collateral, and then makes them to company B or C through virtual re export trade. Then Company B or C reverses hands with each other, and another company transfers the money back to company a through trade, and company a settles accounts and converts it into RMB and deposits it in the bank to continue the above cycle. This kind of operation is mainly carried out through the spread between domestic US dollar loans and RMB deposits or other risk-free returns. But there is a great risk of RMB exchange rate
for another example, copper financing is almost the same, but it only needs to be hedged in the two markets
in fact, it's almost the same, except that different ways focus on different profits, which is also determined by the different social resources that each company can actively use. From the top to the bottom, the resources that need to be used are decreasing. But no matter which one, it's not something that ordinary people and small companies can play with.