The Research On Spreads Trading And Risk Control Of China Metal Future Market

We take the spreads and risk control of metal future market in china as the main topic of this paper. This paper is kind of applied analysis, by the thought of theory coming from practice and serving to practice, we are trying to make the theory of the spreads and its risk control systematic on the basis of the studies results of other people, we are trying to make it more logic according to "what is the spreads" (?) "why should we choose metal spreads" (?) "basic conditions of the spreads" (?)"using principle of the spreads" (?) "the study of basic model of the spreads"(?) "risk control of the spreads" , by taking advantage of the theory and applied analysis of domestic and oversea, we use no arbitrage rules to this kind of model which many investors are likely to choose, we may got the more universal and more practical handling models of metal spreads which many investors are likely to choose and prove it by using the way of financial and mathematics. Meanwhile, we also divided the whole risks of the spreads, bring forward to the relevant countermove to all kinds of risks factor and characters, study how to avoid and control these risks, we are trying to build a more systematic frame in the practice model and risk control of the spreads of metal future market in china.Regarding to risk control of the spreads in metal future market, except using the option of future, we take advantage of VAR first time as the way of risk control in the spreads of investment combination. The investor may got the volume of loss could be happened and the probability of loss, so they may amend the strategy and amount of investment, reduce the losses because of mistakes of investment decisions.