Rate Of ReturnStunned, bewildered, and at a loss...
1、
Today, the arbitrage circle is discussing the silver LOF, which is a very hot topic.
With a premium of over 60%, nearly 200 million in arbitrage positions were dumped today, yet it still hit the limit-up, and there were over 500 million in buy orders—truly a once-in-a-lifetime sight..
Arbitrage is hard work. The brothers were tirelessly moving bricks for a few bucks earlier, and after the subscription shares arrived last night, they couldn’t wait to place limit-down orders at 2.550 for the night session for 121226 silver LOF..
But today, the price hit the limit-up the moment the market opened. The brothers' lunch boxes instantly turned into hotpot feasts, and some even forgot how to use chopsticks..
Most of our circle members also placed limit-down orders last night. This morning, I thought it was unnecessary to place limit-down orders and gave the suggestion below.
2、
Actually, I started arbitraging this LOF in early December, but I’m not happy at all.
Because I started gradually increasing my silver positions in mid-October. I picked two A-share targets: 121226 silver LOF and another individual stock.
When I built my position, the silver LOF had no premium. By early December, it slowly gained a premium. Worried the premium would disappear, I cleared my position with about a 20% profit.
Then I started arbitraging. At the time, my position size was much larger than the arbitrage amount because I couldn’t just buy a few thousand at a time, but the arbitrage had a limit of 100, so it wasn’t much money.
The arbitrage gains compared to the position were a classic case of "picking up sesame seeds but losing the watermelon."
Sometimes knowing too much isn’t good. It’s better to be like a clueless auntie blindly rushing in. Look, today it hit the limit-up with a 60%+ premium..
I burst into tears and fainted in the bathroom!
3、
Sometimes I feel quite torn. One moment I’m hesitating whether to subscribe for 11 million in the North Exchange or more..
The next moment, I’m rushing to pick up 10-yuan water bottles.. Of course, the silver arbitrage has now upgraded to a hotpot feast.
I think if I use the 10 yuan from arbitrage to buy a lottery ticket and win 5 million, I can open another account to subscribe to the North Exchange..
So the more I arbitrage, the more motivated I get—5 million is waving at me.. Hehehe
4、
Below is my survey of our circle members' understanding of LOF arbitrage. The voting isn’t complete yet, but this group should represent the overall proportion.
Most of us have moved from A-shares to Hong Kong and U.S. stocks. Compared to those who only play A-shares, we should be advanced investors. In my view, these people should all know basic arbitrage, but I didn’t expect half of them to be clueless—it’s beyond my understanding.
Today’s article is too long. Later, I’ll write a simple arbitrage tutorial in plain language to make it easy for everyone to understand.
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