Shipyard hedging options: gold, silver, copper, iron and aluminum.

There are three main forms of shipyard arbitrage, namely, cross-delivery month arbitrage, cross-market arbitrage and cross-commodity arbitrage.

① Cross-delivery month arbitrage (cross-month arbitrage)

Speculators use the price difference of the same commodity in different delivery periods in the same market to buy futures contracts in one delivery month and sell similar futures contracts in another delivery month to make profits. Its essence is to profit from the relative change of the price difference of the same commodity futures contract in different delivery months. This is the most commonly used form of arbitrage. For example, if you notice that the price difference between steel in September and steel in June (5438+065438+ 10) exceeds the normal delivery and storage costs, you should buy the steel contract in September and sell the steel contract in June (5438+065438+ 10). After that, when the steel contract in September is closer to the steel contract in June 165438+ and the price difference between the two contracts narrows, you can get profits from the change of the price difference. Cross-month arbitrage has nothing to do with the absolute price of goods, but only with the trend of price difference in different delivery periods.

Specifically, this arbitrage can be subdivided into three types: bull spread, bear market arbitrage and butterfly arbitrage.

② Cross-market arbitrage (cross-market arbitrage)

Speculators take advantage of the different futures prices of the same commodity in different exchanges, and buy and sell futures contracts in two exchanges at the same time to profit from them.

When the price difference of the same commodity in two exchanges exceeds the transportation cost of the commodity from the delivery warehouse of one exchange to the delivery warehouse of another exchange, it can be predicted that their prices will shrink, reflecting the real cross-market delivery cost in a certain period in the future. For example, the selling price of wheat, if the Chicago Board of Trade is much higher than the Kansas City Board of Trade and exceeds the transportation cost and delivery cost, then a spot seller will buy wheat from the Kansas City Board of Trade and transport it to the Chicago Board of Trade for delivery.

③ Cross-commodity arbitrage

The so-called cross-commodity arbitrage refers to arbitrage by using the futures price difference between two different but interrelated commodities, that is, buying (selling) a futures contract of one commodity in a certain delivery month and selling (buying) another futures contract and another related commodity in the same delivery month at the same time.

Summary: In short, you calculate 1. If the price of a commodity will go up/down in the future, you will buy up/down (the term is called long/short) and close your position when the price is in place.

2. Buy a China commodity when one place is cheaper than another (don't forget to calculate the exchange rate, transportation fee and time risk).