Is it possible to hedge against the transaction price?

Author: The Witch, Created: 2020-12-19 16:11:58, Updated:

For example, there is an instantaneous difference in the price of the same brand in two markets, but looking at the difference in price, in fact, it is impossible to hedge. Because the transaction price is often in the middle of buying and selling, so it is not possible to buy.

For example, in the case of the United States,

The A market sells 40, buys 35, and trades 38.

The B market sells 39, buys 33, and trades at 35.

The difference between the two markets is 38-35 = 3, which is profitable, but impossible to order.

What is a reasonable way to pay?


More

maxgeConsider hanging a bidding warrant 1 pending a transaction, but there's a risk that you can't get a deal.

CousinsThe problem here is that buy and sell is deep information, which is visible before the transaction, the transaction is invisible before the transaction, then your next finger is actually to do the implicit leverage. If you want to do the implicit leverage, you need to estimate the transaction price, and the estimate must be wrong. There are too many aspects involved, so we do not talk here. For most people, the reasonable way is a clear discount, i.e. A market selling price of 35 and B market buying price of 36, selling from market B, buying from market A. Direct ordering. There's a saying that's good for you, instead of improving your hand, look for a weaker hand.

allez-zIf you don't have a good strategy, the hedge will be at the market price, otherwise the unilateral transaction risk is too high.

maxgeConsider a currency that has a larger clearing, generally a smaller volume, and a larger clearing can grab the price of both sides 1 position.

The WitchWell, you can only take one side, if both sides can take one.

The WitchI'm a professional, I want to make a transaction with a visible depth, but it seems impossible.

The WitchThat is.