#套利交易策略 arbitrage trading strategy is a low-risk trading method that achieves returns by capturing price differences in the market, mainly including the following three core strategies:

Inter-market arbitrage: Utilizing price differences of the same commodity in different exchanges, such as hedging copper contracts between LME and SHFE, requiring calculation of transportation, tariffs, and other costs. In the foreign exchange market, inter-market arbitrage requires rapid execution to avoid exchange rate fluctuation risks.

Inter-period arbitrage: Based on the price differences of the same commodity in different delivery months, such as buying near-month contracts while selling far-month contracts (forward arbitrage), or the reverse operation (reverse arbitrage). Holding costs (storage fees, interest on funds, etc.) are key considerations.

Inter-species arbitrage: Price difference trading between related commodities (such as soybeans and soybean meal) requires high correlation and consistent delivery months. Triangular arbitrage in foreign exchange also belongs to this category, profiting from imbalances in exchange rates among three currencies.

Risks and optimization: Arbitrage is not risk-free; one must be cautious of execution risks (insufficient liquidity), model risks (price differences not converging), and regulatory differences (such as cross-border arbitrage). Combining “inventory + basis + profit” multi-dimensional indicators can improve the win rate, for example, going long when there is low inventory + deep backwardation + low profit.

Applicability: Arbitrage is suitable for institutions and high-frequency traders, relying on fast execution systems and accurate cost calculations.