The Strategic Design for Trading Stock Index Future Arbitrage

On future markets, stock index futures can be used to hedge risks. But under the influence of time and other factors, there exists an imbalanced phenomenon that is called arbitrage space. This paper uses the financial engineering and information technology to calculate the arbitrage space to help investors gain more profits. Based on the characteristics of stock index future, it tries to find the arbitrage opportunities, point out how to buy low and sell high on the stock market and determine the size of arbitrage space. It also provides a set of trading strategies for stock index future arbitrage to investors.