If I had been in advance a year or two, I might have earned extra money in October last year.

If we were four or five years ahead of schedule, we could still make trouble in Xiangjiang while the Sino-British negotiations...

After thinking about it for a while, Ding Zhiyuan shook his head and drove away all kinds of imagination.

Standing up, stretched, looked up at the national administrative division map posted on the wall, and slowly fell into deep thought.

I don’t know how long it took, but suddenly I felt a warm feeling coming from my back, and then two white lotus-like arms wrapped around my waist.

"What are you thinking?" Ren Chong put his face on his back, and said with resentment: "I've been in for a long time, and you don't pay attention to others."

Ding Zhiyuan continued to stare at the map and said, "Have you counted the money?"

"No." Ren Chong rubbed his back with his face and sneered: "You used to say that you always counted the money and got cramps in your hands. I thought it was an exaggeration, but I didn't expect that I really got cramps today."

Ding Zhiyuan laughed silently and turned around and said, "Why didn't I find out before? Are you still a little money fan?"

"There are red people close to the red people, and the like is black people close to the ink." Ren Chong gave him a blank look, then asked with a smile: "Is there a beautiful girl on the map? I've been watching since I came in, but I'm still watching now."

Ding Zhiyuan smiled and said, "I want to see a beautiful woman, there is a living beauty at home."

Ren Chong said curiously: "Then why are you always staring at the map?"

Ding Zhiyuan said: "I am thinking about the Treasury bill."

"Treasury bills?" Ren Chong looked confused, "What does Treasury bills have to do with maps?"

Ding Zhiyuan was just tired of standing, so he simply held her and sat on the chair, saying, "I'll ask you, how to arbitrage treasury bills?"

"Buy low and sell high and sell high." Ren Chong moved on his thigh, finding a comfortable position, like a gentle kitten lying in his arms.

Ding Zhiyuan smiled but said nothing.

Ren Chong beat him up dissatisfiedly: "Don't keep it in your mouth!"

Ding Zhiyuan said while making his moves: "Buy low and sell high cannot be wrong, but the key to risk-free arbitrage of Treasury bonds is fast and accurate."

"Stop making trouble!" Ren Chong slapped twice on the back of his hand, "Quick? Accurate? What should I say?"

Ding Zhiyuan had to take back his hand and looked at the map and said, "If there are only two pilot cities for treasury bond transfer, such as Beijing and Shanghai, then it will be very simple to achieve arbitrage."

You only need to compare the treasury bills quotes from the two places. If the treasury price in Beijing is low, buy treasury bills in Beijing.

Then transport the Treasury bonds to the Shanghai Stock Exchange for sale, and achieve arbitrage by buying low and selling high, and vice versa.

But what if there is another city? For example, Jinling."

Ren Chong said: "Is that different? Buy where the price is low, and then sell it at the highest price."

Ding Zhiyuan said without comment: "What if it is 4 cities? What about 5 cities? 10, 20, 50 cities?"

Ren Chong realized at this time that it seemed that it was not as simple as he thought, and he couldn't help but frown and think deeply.

Ding Zhiyuan did not disturb her, nor did he take the opportunity to eat her tofu, he looked up and continued to stare at the map.

"I understand a little bit." Ren Chong suddenly spoke, then shook his head, "but I still can't figure it out."

"Oh?" Ding Zhiyuan withdrew his gaze from the map, looked down at her and asked, "What do you understand?"

Ren Chong raised his hand and pointed to the map: "Take Beijing, Shanghai and Ningxia as an example, the quotation for Treasury bonds in Beijing is 90 yuan, the quotation for Jinling is 95 yuan, and the quotation for Shanghai is 100 yuan.

According to the logic of buying low and selling high, it is definitely to buy at the lowest price of 90 in Beijing, and then sell at the highest price of 100 in Shanghai.

But it ignores a very important factor, distance, no, time."

Speaking of this, Ren Chong showed a look of asking for praise: "Only when money flows, can it better realize its value. The faster it flows, the more it earns. Is it right?"

Ding Zhiyuan knew that she really understood when she heard this. She couldn't help pinching her nose and smiled and said, "Smart! Time is money, efficiency is life, this is what she said."

To put it bluntly, this question is very simple: do a business with a profit of 1 million yuan a year, and do a business with a profit of 100,000 yuan a month, who will make more money in the end?

The distance between Beijing and Shanghai is even longer. Within the same time, it is enough to travel between Beijing and Shanghai to Shanghai three or four times.

Therefore, even if the profit generated by one round trip to Beijing and Shanghai is twice that of one round trip to Shanghai and Nanjing, the total profit is not as good as the latter in a limited time.

Therefore, time factors, or capital turnover rate, must be considered, which makes the original simple trading model complicated.

Ren Chong narrowed his eyes with a smile: "It's all taught by Teacher Xiao Ding!"

"Hmm?" Ding Zhiyuan said angrily with a tiger face, "Teacher Ding?"

Ren Chong covered his mouth and laughed: "Teacher Dading, it's Teacher Dading!"

Teacher Ding continued to say with a stern face: "This afternoon, Teacher Dading is kind enough to teach you knowledge. It would be fine if you don't study seriously, but you even speak ill of the teacher, punching and kicking.

Xiao Ren, Teacher Da Ding wants to criticize you. Do not be picky in your studies and treat knowledge equally!"

"Ph!" Ren Chong's face turned red, and his butt twisted unnaturally on his thigh, "I don't learn your broken knowledge!"

Ding Zhiyuan exclaimed in his heart that he couldn't bear it, and quickly changed the topic and said, "Didn't you say that you still don't understand?"

Ren Chong gave him a blank look, moved his butt aside without a trace, and said, "If you take time into consideration, it will be too complicated.

I can still challenge three or four cities, but there are more....

I want to break my head, but I don't know how to calculate it."

There are 3 types of transaction routes, 4 cities have 6 types, 5 cities have 10 types...

With each city added, the complexity of the transaction model will multiply and even increase exponentially.

The more cities, the more complex transactions, the higher the transaction costs.

"Yes." Ding Zhiyuan nodded deeply in agreement. He had already considered what Ren Chong said.

At present, a unified national bond market system has not been established, and a unified national treasury bond transaction price has not been formed.

This is a prerequisite for arbitrage of treasury bonds. From the northernmost Harbin to the southernmost Shenzhen, there are differences in the treasury bond quotations between these seven pilot cities, thus creating interest rate spreads.

If it were a nationwide networked trading platform like later generations, it would be impossible to give birth to arbitrage in other places.

Only by discovering interest rate spreads at the fastest speed can you make the biggest profit.

But discovering interest rate spreads in time is only a necessary condition for arbitrage, and the most important thing is how to earn interest rate spreads.

In this era without computerization and networked transactions, there is no other way, and you can only rely on manual transactions.

Send people to stay in the pilot city to collect local quotation information and then discover interest rate spreads.

When the interest rate spread is found, you need to use the escort group to embezzle the interest rate spread between places.
Chapter completed!