1、What is basis arbitrage and term arbitrage (1) Introduction Using the characteristics of basis difference with convergence, arbitrage is carried out by opening short and opening long in the stock index when the basis difference is too large. Basis arbitrage is carried out in the stock index spot and futures markets at the same time, respectively. This type of arbitrage is one of the most common types of equity index futures arbitrage strategies. Participants in basis arbitrage tend to be risk averse and have a certain capital size. Cash and futures arbitrage is the act of traders trading in both markets in reverse to take advantage of the change in spread to gain risk-free profits when the spread between the futures market and the spot market changes unreasonably. A stock index futures contract is a financial futures contract with a stock price index as the underlying. The futures index and the spot index should theoretically maintain the same trend of movement. In reality, the futures contract and the spot index may deviate from each other from time to time, and when the deviation reaches a certain value, the opportunity for cash and futures arbitrage arises. (2) Risk Different arbitrage strategies involve different risk characteristics, and cash and futures arbitrage using stock index futures is the most ideal risk-free arbitrage strategy for arbitrage trading. I. Risk-free arbitrage In finance, cash and futures arbitrage is a risk-free arbitrage strategy. The risk-free here refers to the fact that the principal of the futures arbitrage and the arbitrage return locked in when the position is opened are not affected by market price fluctuations. The delivery price of CSI 300 stock index futures is calculated as the arithmetic average of the last 2 hours of the underlying index on the last trading day. Such a delivery system determines that the futures price and the spot index will eventually converge, and the spread returns locked in when the arbitrage position is opened will definitely be realized, which is the basic principle and institutional basis of risk-free arbitrage. The risk of insufficient margin in futures arbitrage is due to the fluctuation of futures market in the opposite direction, which leads to the need for margin call before closing the position. When the cash in the whole arbitrage portfolio is insufficient to meet the margin call requirement, the futures position may face the risk of being forced to close the position. Using risk management models such as VaR, extreme value theory and stress testing, we have developed a margin risk management model and a dynamic balance management program for both futures/cash markets to ensure maximum efficiency in the use of capital while completely preventing the risk of forced liquidation. Operational risk management Operational risk refers to the risk of loss due to system defects, internal processes, staffing deficiencies or errors, or from external events. Since cash and futures arbitrage requires simultaneous trading in two markets, the operational risk of arbitrage trading is higher than that of unilateral stock trading. 2. In addition to relying on scientific methods, cryptocurrency arbitrage has to find ways to save money. One of the easiest ways is to enjoy the discounted trading fees. The handling fee is small, but it must not be ignored. I once calculated that as long as the transactions are frequent and long, the accumulated amount may exceed 10,000 U. Next, I will introduce several common ways to reduce the fees for large trading platforms. (1) Reduce Binance's fees Binance is currently the world's largest digital currency exchange, you must sign up for Binance if you speculate in coins. The transaction fee will be deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at 3,452.55USDT per share. Transaction fee = 10Ethereum0.1%=0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1%=34.5255USDT What many people don't know is that Binance transaction fees can also be reduced. If you want to reduce the Binance transaction fees, you must use the invitation link below or use the invitation code "Q022W7SC" to register. https://accounts.binance.com/en/register?ref=Q022W7SC

(2) Reducing OKX fees OKX is a professional digital currency trading platform that is loved by many users, and its trading fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: general and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset volume. The different levels determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level among them. The first method: OKX official set the maximum saving percentage is 20%. Use the following link to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH The second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, or you can not get 20% cashback percentage. (3) reduce FTX fees FTX is currently growing very quickly, the contract players more exchanges, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692 3, trading road is long, together to move forward Want to learn more about ways to reduce the commission? telegram: btcethcool We have established a community dedicated to the study of trading, add telegram friends to pull you into the community.