English
Back
Download
Log in to access Online Inquiry
Back to the Top
[Awarded] Unlock the power of knowledge and win 1000 points
Views 95K Contents 218

ETF arbitrage trading

1. In the past, present, and future, ETF arbitrage trading is a legal and compliant market business. Currently, there are many private equity funds or individuals engaged in such trading. The mechanism is very simple, which is to provide liquidity to the market and earn the difference between the real-time price of the ETF and its net asset value.
2. Due to the redemption mechanism of ETFs being similar to the T+0 trading of individual stocks, it is possible to trade back and forth an unlimited number of times within a day. The profit for each trade in a day, or even in a week or month, is generally not much, but it can accumulate over time. Moreover, if investors can strictly adhere to basic rules, such as real-time hedging, not determining or even predicting the market trend in the next second, the probability of losing money is very low.
3. ETF arbitrage traders are typical risk-averse market participants. Their biggest characteristic is that they don't gamble. So, they are certainly not the 'speculators' in the minds of many people who don't really understand, nor is it appropriate to call them 'investors'. Some people jokingly refer to themselves as 'scavengers', meaning that they obtain stable positive returns bit by bit through their own hard work, picking up small amounts of discarded silver pieces by the market.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
See Original
Report
2480 Views
Comment
Sign in to post a comment
    不动如山!rat poison squared
    313
    Followers
    2995
    Following
    1654
    Visitors
    Follow
    Discussing
    Trump 2.0 countdown: What's the next big opportunity in the markets?
    🎙️️ Discussion: 1. Could Trump's cryptocurrency policies potentially benefit the crypto market? 2. Might his tariff policies have a positiv Show More