wholesale premium jewelry boxes What does it mean to preservation and arbitrage?

online wholesale indian jewelry The hedging preservation refers to the place where the futures market is used as a place to transfer the price risk, and the use of futures contracts as a temporary substitute for buying and selling goods in the spot market in the future. Insurance trading activities for insurance.
The arbitrage refers to the difference between investors or borrowers to use the interest rate of interest rates of the two places and the difference between currency exchange rates, and mobile capital to earn profits. Arbitrage is divided into two types: supplement arbitrage and non -replacement arbitrage.
Extension information:

During arbitrage transactions, investors are concerned about the mutual price relationship between contracts, not the absolute price level. Investors buy a contract that considers the price to be underestimated by the market, and sells contracts that they think that the price is overestimated.
If the direction of the price change is consistent with the original prediction; that is, the price of the contract buying the contract is higher and the selling contract price is lower, then investors can profit from changes between the relationship between the two contracts. Conversely, investors will lose.
The prerequisite for arbitrage activities is: the amount of water latching rate of arbitrage or high interest rate currency must be lower than the interest rate difference between the currency of the two countries. Otherwise, the transaction is unprofitable.
Reference materials Source: Baidu Encyclopedia -Setting Dialogue
Reference materials Source: Baidu Encyclopedia -arbitrage

wholesale western chic jewelry Hello, set insurance: As a hedging strategy, it is one of the main functions of futures. Investors are achieved in reverse hedging of the spot market and futures market. Risk is less than arbitrage.
The arbitrage: You need to do two or two directions at the same time, two contracts or assets with high correlation. The profit margin of arbitrage comes from the difference between the price difference when opening the position; the risk of arbitrage lies in the risk of spreads, that is, the direction difference and the expected background, rather than the unilateral risk in the stock and futures market. Arbitrage is speculative, divided into cross-session arbitrage, cross-market arbitrage, cross-commodity arbitrage, raw materials-commodity arbitrage.

wholesale pearl wedding jewelry The futures market is a place for futures contract trading. The futures market consists of futures exchanges, futures liquidation, futures brokerage companies, and futures transaction participants. Therefore, the futures market is a summary of special economic relations formed around futures contract transactions. The basic role of the futures market is to avoid losses caused by the adverse price changes that may occur from production from production to the end. Generally, the transfer of commodity ownership is generally not realized.
price discovery and hedging are the unique features of the futures market.
The market has price discovery function, and futures prices provide price indicators for the spot market. The information collected by the futures market provides producers with more supply and demand information, which helps the spot market price stability.
The futures market concentrated a large number of manufacturers and needs. The futures market has price discovery functions and can provide instant demand and supply changes. If car is introduced, macro -control will be significantly reduced. , Not an administrative order. We want to guide and adjust the market. The most important thing is to find the maximum profit opportunities under the guidance of price guidance through the micro -subject with independent ownership.
While options, while buying or selling financial vouchers (spot), selling or buying futures contracts in the futures market. The losses can be made up for the profit of the futures contract. Those who are preparing to invest in the future in order to prevent the loss of interest rates from being lost, they can guarantee the value preservation method in the futures market. For those who have fixed income securities, in order to prevent rising interest rates and the decline in securities prices, the hedging method of selling futures can also be guaranteed. The relationship between the price and annual income rate of financial vouchers is inversely proportional. When interest rates rise, the price of fixed income securities will decline as long and short -term library coupons; when interest rates fall, the market price of fixed income securities will rise.
The principle: (1) The futures price trend of the same commodity is consistent with the spot price trend
The futures price and spot price are affected and restricted by the same economic factors in the same market environment. In the case, the price changes in the two markets are the same. The hedging period is to use the price relationship in these two markets to obtain a result of losses in one market while making profitability in another market.
(2) The price contract between the spot market and the futures market is approaching the date. As the day is approaching, the two tend to be consistent.
(3) The hedging of the set period is to replace the spot price fluctuation risk with a smaller base difference risk
to the futures market to participate in the futures market, to avoid the risk of changing the price of the spot market, The relatively small risk of accepting the basis change.
Principles: (1) The same principle of commodity types
The same principles of commodity types refer to the same principle of commodity types. Or sell the spot products in the same type. When doing the hedging transaction, the same principles must be followed. Otherwise, the hedging transactions made not only cannot achieve the purpose of avoiding price risks, but will increase the risk of price fluctuations.
(2) The principle of equal quantity of goods
The principle of equal number of products refers to the number of goods contained in the selected futures contract when making a set of futures preservation transactions. The number of goods buying or selling is equal. The reason why the hedging transaction must adhere to the principle of equal number of goods is because only the principle that only the reason why the number of goods must be adhered to is equal. The profit amount is equal or closer to the losses in another market.
(3) The same or similar principles of the month
The same or approximation of the month refers to the best time to settle the futures contract when making a set of time preservation transactions. The time for buying or selling spot products on the same or selling goods is the same.
(4) The opposite principle of the direction of the transaction
refers to the hedging transaction when doing the time preservation transaction, and the hedging period must be used at the same time or in the spot market. That is, the principle of reverse can be used to obtain a result of losing money in one market while making profitability in another market, so as to use one market profit to make up for the losses in another market, to achieve the set period The purpose of preservation.
The four major operating principles of the setting value preservation transaction must be considered at the same time at the same time, and any of them cannot affect the effect of the hedging transaction.
The application of duration of value preservation
The risk of price fluctuations faced by production and operation companies can be divided into two types: one is to worry about the price of a certain kind of commodity in the future; the other is to worry about some kind of goods in the future. The price fell. Therefore, the hedging preservation on the futures market can be divided into two most basic operation methods, that is, buying the dating and selling duration to preserve it.
This to buy a period of value preservation, which refers to the purchase of the goods futures contracts with the same number of spot products in the spot market in the futures market that will buy in the futures market. Buy in the futures market and hold a bulls. Then, when the hedging person bought the contract of the spot goods on the spot market, it preserved it for it for the transaction of buying spot goods for the spot market.
The applicable objects and scope; first, processing manufacturing companies to prevent rising prices when purchasing raw materials in the future. Second, the supplier has signed the spot supply contract with the demand party to deliver the goods in the future, but the supplier has not purchased the source of the supply at this time, and is worried that the price will rise when buying the supply in the future. Third, the demander believes that the current price of the spot market is very suitable, but because of insufficient funds or lack of foreign exchange or unable to find a product that meets the rules for a while, or the warehouse is full, you cannot buy the spot immediately. When you buy the spot in the future, you can buy it. Price increased. A steady way is to maintain value for buying.
Sold sale period preservation refers to the preserved recharge person who sells and the period in the futures market that will be sold in the spot market. Essence Then, when the hedging person actually sells the spot product in the spot market, it is used or before and after, and then hedge in the futures market, buy and the futures contracts that are originally sold, and end the setting of the hedging of the hedging. Trading, which is then realized to sell spot value in the spot market. Because it first establishes a short trading part in the futures market, it is also called short value preservation or short -selling.
The applicable objects and scope; first, manufacturers, agricultural factories, factories, etc. that directly produce the physical futures of the commodity futures, have inventory products at hand that have not been sold or will be produced and harvested a certain kind of commodity futures. Essence Second, the storage and transporters and traders have not been sold at hand or have not been sold at hand or have signed a certain product at a specific price at a specific price but have not been resold. They are worried that the price will fall in the future. Third, processing manufacturing companies are worried that the price of inventory raw materials will fall.
The example description
This soy oil price fluctuations are very severe. The supply and demand status, seasonal factors, supply and demand status of related products, and changes in various links such as production, transportation, processing, and sales will fluctuate soybean oil futures prices. Therefore, various roles on the entire industrial chain, including soyons, processors, brokers, speculators, soybeans and traders, and other oilseed traders, can use soybean oil futures to avoid the price risk brought by the spot market.
Soybean oil is a bymoral product. Each tons of soybeans can produce 0.2 tons of soybean oil and 0.8 tons of soybean meal. The price of soybean oil is closely related to the price of soybeans. The annual soybean production will affect the price of soybean oil. Soybean is soybean. Soy oil prices fall in harvest, and soybean oil will increase price when soybean is owed. At the same time, there is also an interrelated correlation between soybean meal and soybean oil. The price of soybean meal is good, soybean oil will fall, soybean meal is slow, soy oil production will decrease, and soybean oil prices will rise.
Soybeans, soybean meal and soybean oil futures are almost listed at the same time, thereby building a complete soybean -related product futures system that can provide places for institutions and individuals in all aspects of the soybean industry chain. Market investors can conduct targeted hedging, arbitrage and speculative operations according to their own needs. At the same time, through the analysis of the interrelationship between the three, low -risk arbitrage transactions can be performed, which helps reduce blind speculation, enhance the liquidity of the futures market, and reduce market risks.
In 2006, my country's soybean oil, palm oil, rapeseed oil and other vegetable oil products will cancel the tariff quota management. The tariffs will be reduced to 9 %, and the import environment of soybean oil will be more loose. Without quota restrictions, the number of enterprises with conditions for importing soybean oil will increase significantly, the uncertainty of the number of soybean oil imports will also increase significantly, and the fluctuation of soy oil prices will increase. At present, soybean oil futures have been successfully listed on the Dalian Commodity Exchange, becoming an effective supplement to the soy futures variety system, providing domestic soybean enterprises with risks, and also in line with the requirements of the international futures market.
Cases: my country's XX soybean oil company plans to import 500 tons of soybeans from the United States in March 2006. The spot price is 1,000 yuan/ton. Because soybeans need to arrive in three months, in order to avoid the 500 tons purchased after 3 months The risk brought by the rise in soybeans, the company decided to preserve the hedging period.
This to buy a period of value preservation as an example
market

time
Stock market
Futures market
January spot market price is 1,000 yuan/ Tons, because the price and funds did not buy soybeans at a price of 1200 yuan/ton, buying 500 tons of soybeans in April
In April to buy 500 at a price of 1500 yuan/ton on the spot market Tons of soybeans will buy 500 tons of contracts in April to sell at 1700 yuan/ton
The April buying spot more 500 yuan/ton futures hedging profit of 500 yuan/ton