Arbitrage is also called "interest arbitrage". There are two main forms: no arbitrage. That is, using the interest rate difference between the capital markets of the two countries, short-term funds will be transferred from the low interest rate market to the high interest rate market to obtain spread income. Throw and arbitrage. That is to say, the arbitrageurs use forward foreign exchange transactions to avoid the risk of exchange rate changes while transferring short-term funds from place A to place B for arbitrage.
Define characteristics:
Arbitrage is also called spread trading. Arbitrage refers to buying or selling an electronic trading contract while selling or buying another related contract. Arbitrage trading refers to trading in the opposite direction in related markets or related electronic contracts by taking advantage of the price difference changes between related markets or related electronic contracts, and making profits in the expectation of price difference changes.
Arbitrage, also known as arbitrage, usually refers to buying a physical asset or financial asset at a lower price and selling it at a higher price when there are two prices (in the same market or in different markets), thus obtaining risk-free income.
Arbitrage refers to the act of making profits by correcting the abnormal situation of market price or yield. Abnormal situation usually refers to the behavior that the price of the same product is significantly different in different markets, that is, arbitrage means buying low and selling high, which leads to the price returning to equilibrium level. Arbitrage usually involves establishing a position in one market or financial instrument and then establishing a position in another market or financial instrument to offset the previous position.
After the price returns to the equilibrium level, you can close your position and take profit. Arbitrator refers to an individual or institution engaged in arbitrage.