Futures Arbitrage

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					Futures Arbitrage
                  ?Futures arbitrage - to take the risk of making the most minimal
security money
                                     Hai Zi
     Futures, the extent of risk, and only did people know futures. Futures amplified
not only funds, there are infinite zoom investor greed and fear. Control greed and fear
have been be difficult, but also to be enlarged 10 times of the more difficult. This is
also the vast majority of individual investors in the futures market loss reasons. And
the fact that the data is very frustrating for the individual investors: 90% of the retail
investors losses.
Why do individual investors in this market rarely make money, and I was out from the
individual investors, individual investors all the experience I went through,
summarize, the main reason for loss of personal investment:
1, unlimited greed and fear
2, trading too frequently
3, there is no strict disciplinary action
4, fund management not done well
You may have put more than understandable, but it really is hard to overcome them,
we can look at the characteristics of futures know.
   ?Two-way trade and T +0. This allows investors to find opportunities to make
money everywhere, in theory, all the fluctuations in the price investors can earn,
whether up or down. This is difficult to make money where the futures, the more
opportunity equals more you can not seize the opportunity, just like you make
mistakes more easily. Many brokers say it is the easiest: the direction of the turn to do
wrong. The question is how do you know what your doing wrong, how do you know
to do is to turn right? Very often, we do more, the price fell, we turn short, the results
rose. Have you against it, the market is always fluctuating, you will never in the
anti-right, anti-every time the do, because of loss, how much margin you can torment?
Homogenization of the futures company and now operate in the maintenance of
operating income by fees, so that the whole industry is full of speculative climate,
shadowless promoted among the large number of transactions, the number of
individual investors, individual investors also make more losses . Mature futures
markets in foreign countries over 30% of trading is arbitrage trading, which may be
1% of the country not to.
   ?Daily settlement system. This is a personal investment is the most lethal, giving
unlimited funds management mentioned the difficulty. Some say no more than 1 / 3
positions, well, do more today, and prices fell, a look tomorrow, yesterday, the deficit
has more than 1 / 3 positions, and how to do, liquidated Yeah. The results next day,
they fell, they liquidate the results when you liquidate, the prices have gone up, you
have to hand cut from the third-hand, and this time go up, up in space three times the
space than you can fall back the size of your original capital, is undoubtedly improve
the recovery more difficult. So again and again liquidate, we lost a lot of money.
Fluctuations is profitable, it is a lot of individual reasons like copper and rubber.
Because everyone thought can grasp market fluctuations, but it did not, a lot of people
that complete themselves in the fluctuations in the loss of money, and then eliminated
by the market. Inherently risky and volatile, because it means your fault, too large
amount of opportunity and loss. For smaller retail guarantee, one or two fluctuations
will eat half of the margin. This is attributed to luck a lot of people will. But I prefer
to owe it presumptuous.
May we all feel good with technical indicators to guide action. But the technical
indicators are lagging the most lethal, which is always technology to send the pain.
Market trend often occurs, the technical indicators trading allows investors to earn
very huge profits, but it actually makes investment in the oscillation city suffered
heavy losses. Unilateral market accounted for less than one-third of the total market.
That is, one-third of the time investors make money in two-thirds of the time loss, the
final results can imagine. There are more questions, how to judge or oscillation
unilateral market price?
Some said I was from the fundamentals to do, to do trend. How has the number of
individual investment funds? How much you can carry back losses. Also how much
you can withstand the fluctuations in the number of suffering?
  Only the profit is more difficult than the stop loss. People will start futures were told,
we must stop, do not let you stop down the drain. But no one has said to only the
profit. Because no one will make money and more views, so there will be no time
making money out of the final until the loss, and then had to stop a phenomenon.
Many friends this way, the margin was just off the stop-loss. And stop-loss is also a
great difficulty, different varieties of the stop bit is different, stop loss set smaller,
frequent trading, stop loss set the big, big loss limit it, psychological bear. Therefore
inherently difficult to stop setting, mindful of the fact earnings even harder. When the
profit, we are all optimistic illusions of 100 times, 1000 times, futures do have this
story, but we have not asked these stories do a sequel? Many riches in this market
after the end point will be at a loss for the real long-term stability in the market to
make money is definitely not riches.
   ?Speculative investors are not allowed unilateral mistake, great speculative profits,
the risk is great energy and time for investors, as well as the overall quality
requirements are high, so to speak, you do the 10 times, perhaps in the last added a
warehouse, ten times the profit before results are returned to the market. This is
someone to do 20 million from 40,000, and then back to 50,000 stories. And prodding
of the time is short of. This is the futures risk. How many individual investors in this
market where impunity. Means and market speculation game, individual investors will
always be markets for vulnerable groups, not the start of the game is doomed to
failure as the result of personal investment. Weak individual investors in small funds,
stock information, do not know, poor risk tolerance, time and energy is not enough.
On what basis you say individual investors in this high-risk markets to make money?
Futures market two major functions: price discovery, the provision of risk regulation.
Hedging through futures markets do business to avoid risks, but the risk to engage in
speculative behavior of investor. In futures and spot markets to achieve price
discovery is certainly an expert or experts in this market, individual investors, you is
not it? How do you know the price of a departure from the truth, how do you know
that the production of downstream demand, how do you know the cost of production
change? These do not know, found that prices begin to talk about, so individual
investors in the investment market to a loss in the final game.
   ?After several years of investment in futures, I have earned over violence, but also
sharp losses over the last before they get to make stability in this market in long-term
profit, arbitrage is the only option. Arbitrage and the market is not as long and short
game opponents, it is also short and do more of a transaction is in the market caught
between long and short game to make a kind of spread changes in profits. This
high-risk investment in the futures, through arbitrage, hedging against market risks,
which would have left gave arbitrage investors living space.
Arbitrage has the following advantages:
   ?Hedge risk, this is the biggest advantage of arbitrage. Futures Market risk is the
infinite, in particular systemic risk is the risk of small investors who can not afford,
like in October 2008 after the systemic risk, as many varieties of consecutive 7,8 a
daily limit, how can individual investors can afford number plate. Even if you are
10% of positions, wrong direction for most of the deposit will be lost. Arbitrage is a
high correlation in two varieties, a short, one to do more, so that large fluctuations in
the market, the city with up with the fall, will be slightly different due to small
changes in species. Therefore, large fluctuations in this market, the arbitrage profits
may also be slight. Even small losses will only damage it, there is not much affected.
   ?Save time and energy on: Many are seasonal and cyclical arbitrage arbitrage,
which requires investors to make one or two operations corresponding time on the trip,
and then wait until the next time another operation. During this period does not
require investors to be everyday stare disk, do not require investors to operate too
frequently. Time I have a large energy reduction can do invest in real life.
   ?Stop easy to control. Arbitrage is more to be a probability trading, the probability
of events large transactions, such as palm oil and vegetable oil spreads. If the history
of the expansion will be reduced to around 1200, then in this limit, we can do to
expand the arbitrage spread, which stop in 1200 to set down a little on the line. This
loss is well controlled in a very small range. And historical data to support the
probability of profit and loss and relatively large, the feasibility of very good deal.
Loss of space can be controlled, profit margins are predictable, such investors can be
very good to avoid the greed and fear.
    Arbitrage is the time for space, investment, arbitrage is a high correlation in two
varieties, due to seasonal or cyclical changes, make changes in their spread an
investment. So he is not the most important point of difference, but time at the right
time to make the appropriate arbitrage, as long as the wait for sufficient time to have
wanted to be a significant profit, should take up time, profits, losses, Touzi all with
life determined. Arbitrage is more comfortable as the spring sowing autumn-like