ETF arbitrage refers to the use of the trading mechanism of ETF funds to obtain profits through short-term buying and selling spreads or portfolio investments.
Specifically,The most commonly used arbitrage methods for ETF arbitrage are: price arbitrage and volatility arbitrage.
1. Price arbitrage:When the price of the ETF secondary market deviates from the net value of the primary market, investors can buy undervalued ETFs (in the secondary market Buy the ETF and redeem the ETF to get a basket of stocks), and at the same time sell the overvalued stock portfolio (subscribe for the ETF in the primary market and sell the ETF to get cash) to achieve arbitrage. 
2. Volatility arbitrage: Volatility arbitrage is a strategy based on market volatility. When market volatility is high, investors can make profits bybuying or selling options, futures and other derivatives. Generally used is to carry out fluctuation arbitrage.
Profit Principle: Take advantage of transaction price fluctuationsExample:
Single investment: Invest 1,000 yuan at a time at a price of 1 yuan to purchase 1,000 units of the fund.
Grid trading:According to the fund transaction price, the operation of adding or subtracting positions will be strictly performed at the time when the grid trading signal is issued.
The grid trading strategy has gone through 8 trading time points, with a total of 1,200 shares bought and 600 shares sold. Calculated based on the price at the last trading time, there are a total of 600 shares of funds and 420 yuan in cash, with a total profit. Since the single investment has just been repaid, the rate of return is 0%. (600*1+420)/1000-1=2%
In this case, it is generally usedGrid trading, but oftenIf you think It is inconvenient to conduct grid trading manually, so you can use intelligent trading tools.
Many brokerages now providegrid trading smart conditional orders. This intelligent tool can avoid the trouble of manual market tracking. The machine strictly executes buy and sell orders according to the preset trading plan, and can be continuously monitored even when it is shut down in the form of conditional orders.
Although the profits gained each time by selling high and buying low are not small, it is a process of gathering sand into a tower, and the accumulation is still very surprising.
Specific practical steps for grid trading:
The first step is to choose the ETF target:
Because grid trading is a high-frequency transaction, it requires real-time transactions. We don’t mind operating funds here. ETFs are still available.
And please choose a variety with greater volatility. The greater the possibility of hitting the buy and sell line. The more times you sell, the more profits you will make.
Step 2: Establish a bottom position:
We first need to establish a bottom position for grid trading. The size of this position is determined based on the market valuation. If the current valuation If the valuation is lower, the position can be slightly increased, and if the valuation is higher, the position can be lightened first. 
Step 3: Set the size of the grid:
At this time, it depends on the fluctuation range of your ETF or other targets.
Example:We set For example, if you select a target the bottom price is a>20 yuan or if it rises above 40 yuan, trading will be suspended. , and the price falls 1 yuan, then sell 2 yuan that falls, buy 1 share, and for every rise 2That is, for every yuan. 40 yuan (can also be set as a ratio, here For convenience of example), the top price is set to 2 yuan, the price interval is 20
Step 4:Set the share of each grid
In order to prevent the network from breaking, the size of each grid needs to be calculated based on the available fund balance and the lower limit of the grid price: if the market falls unilaterally, the remaining funds 10,000 can be used at the closing price20 , 18, 16, 14, 12, 10 exactly buy 2,000 shares each (you can also buy and sell at a fixed amount, here is an example for convenience). 
So we set the trading volume per grid to 2,000 shares.
Step 5:Set trading time
For the sake of convenience, we directly set the modified strategy to be long-term effective. As long as the network is not broken, the grid trading strategy will continue to run and continue to collect wool from the volatile market.
Generally, it is recommended to set it up to half a year. Generally, stocks will fluctuate after half a year. Do not always set a long-term period. You can choose to set it by time such as the 5th, 10th, 20th, etc.
Grid trading itself is high-frequency trading, which is unlikely to be possible if manual tracking is performed. For more details, please pay attention to the exchange. Describe in detailgrid trading strategy development and application, and help you solve problems on the investment journey!