5 thoughts on “The difference between arbitrage and set insurance ??”
Ana
As a hedge strategy, setting is one of the main functions of futures. Investors are achieved in reverse hedging of the spot market and futures market. Risk is less than arbitrage.
The arbitrage: You need to do two contracts or assets with high correlations at the same time. The profit margin of arbitrage comes from the difference between the price difference when the position is opened; the risk of arbitrage lies in the risk of price spread, that is, the direction difference and the expected background, rather than the unilateral risk in the stock and futures market. Arbitrage is speculative, divided into cross-session arbitrage, cross-market arbitrage, cross-commodity arbitrage, raw materials-commodity arbitrage.
The set of insurance is mainly the risk of the spouse's avoided price fluctuations. The arbitrage is to earn the difference between the recent and the long -term and the treaty.
The hedging of hedging refers to the operation of production, consumption, and trading companies in the futures market in order to avoid price fluctuation risks. The arbitrage refers to the operation that the price difference is deviated from normal areas. The risks and returns are relatively small, but once it is found that such opportunities are relatively stable. Divided into: cross -market arbitrage, cross -variety, cross -contract, and current arbitrage.
The set of insurance is the practice of avoiding price risks to lock profits by related commodities. There are three types of arbitrage, cross -term arbitrage, cross -market arbitrage, cross -variety arbitrage, that is, through different times, different varieties, different markets to earn the difference
The first purpose is different: The main purpose of arbitrage operation is to bear the relatively stable profits at the same time at the same time. The purpose of setting is to transfer risks and not for profit. In the successful cases of many sets of insurance, the futures parts are often lost, but as long as the profit and loss of the two markets of the spot is basically offset, it has achieved the purpose of locking risks. The second foundation is different: This generals generally hold positions on the spot, or are expected to hold the spot position, so the reversed futures position of futures is established to manage the spot risk. In other words, if there is no operating needs in the spot market, there will be no futures parts. The arbitrage is different, and the multi -party parts, short parts, and spot parts they hold are part of arbitrage operations. The eclipse has obtained the profits from the relative price differences of these positions. The third market scope is different: The sets of insurance involves only the two markets of spot and futures. In arbitrage operations, the operator can operate the current arbitrage at the same time at the same time in futures and spot. Different varieties of cross -product arbitrage between the same mounting moon, or cross -market arbitrage between different futures operation places. The fourth depending on: The set of insurance is the consistency of changes in futures operation venues and spot prices, and the more consistent with the changes, the better The unreasonable deviation between the futures or the price of the futures, or the price of the contract to obtain arbitrage profits, and the greater the unreasonable price difference, the greater the profit of arbitrage operation.
As a hedge strategy, setting is one of the main functions of futures. Investors are achieved in reverse hedging of the spot market and futures market. Risk is less than arbitrage.
The arbitrage: You need to do two contracts or assets with high correlations at the same time. The profit margin of arbitrage comes from the difference between the price difference when the position is opened; the risk of arbitrage lies in the risk of price spread, that is, the direction difference and the expected background, rather than the unilateral risk in the stock and futures market. Arbitrage is speculative, divided into cross-session arbitrage, cross-market arbitrage, cross-commodity arbitrage, raw materials-commodity arbitrage.
The set of insurance is mainly the risk of the spouse's avoided price fluctuations. The arbitrage is to earn the difference between the recent and the long -term and the treaty.
The hedging of hedging refers to the operation of production, consumption, and trading companies in the futures market in order to avoid price fluctuation risks.
The arbitrage refers to the operation that the price difference is deviated from normal areas. The risks and returns are relatively small, but once it is found that such opportunities are relatively stable. Divided into: cross -market arbitrage, cross -variety, cross -contract, and current arbitrage.
The set of insurance is the practice of avoiding price risks to lock profits by related commodities. There are three types of arbitrage, cross -term arbitrage, cross -market arbitrage, cross -variety arbitrage, that is, through different times, different varieties, different markets to earn the difference
The first purpose is different:
The main purpose of arbitrage operation is to bear the relatively stable profits at the same time at the same time. The purpose of setting is to transfer risks and not for profit. In the successful cases of many sets of insurance, the futures parts are often lost, but as long as the profit and loss of the two markets of the spot is basically offset, it has achieved the purpose of locking risks.
The second foundation is different:
This generals generally hold positions on the spot, or are expected to hold the spot position, so the reversed futures position of futures is established to manage the spot risk. In other words, if there is no operating needs in the spot market, there will be no futures parts. The arbitrage is different, and the multi -party parts, short parts, and spot parts they hold are part of arbitrage operations. The eclipse has obtained the profits from the relative price differences of these positions.
The third market scope is different:
The sets of insurance involves only the two markets of spot and futures. In arbitrage operations, the operator can operate the current arbitrage at the same time at the same time in futures and spot. Different varieties of cross -product arbitrage between the same mounting moon, or cross -market arbitrage between different futures operation places.
The fourth depending on:
The set of insurance is the consistency of changes in futures operation venues and spot prices, and the more consistent with the changes, the better The unreasonable deviation between the futures or the price of the futures, or the price of the contract to obtain arbitrage profits, and the greater the unreasonable price difference, the greater the profit of arbitrage operation.