taurus 1
Daytrading arbitrage is almost dead, since software is much faster.
Ok, thought so ... but why I still see people saying I work as Arbtrager ??? in India
Futures/cash arbitrage will always be there, if you know how to trade it.
Did get some advice from HSBC etc at retail level it is not worth it becasue of brokerage + interest on Long position
Brokers are not interested in giving reduced margin because they get nothing from it.
I am referring to Margin loan not reduced margin . by giving a margin loan a broker earn handsome interest with little risk
I don;t know if people are confusing about my question about Margin ,
What I am referring to is something like this
http://www.anz.com.au/personal/investments-advice/products-services/investment-lending/margin-loan/
Or like this
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/8/14/18/2
Further it is possible in Australia ( not USA) to borrow 100% of stock price it is called "Protected Equity Loans" Broker make good money ..
This is how it works
Trader borrows 100% to purchase stock
Broker is happy to give because the condition is Trader a) Purchases a ATM Put thus protecting the loan + b) pays the broker loan interest upfront
Stock remains on trader's name but with custody with broker
It is expensive but people use it for tax purposes
IMO, covered calls are one of the riskiest
Not riskier than just going LONG, the downside risk is slightly reduced
strategies unless collared.
Collar will only protect your position won't make you any money unless you are prepared to take risk ( ATM call sales proceeds bigger than OTM Put sell cost)
You would be much better off trading directionally with small money rather than putting in more money to get peanuts.
Covered call writing can yield even up to 40-50% per year ( with risk attached) so it is not peanuts
Daytrading arbitrage is almost dead, since software is much faster.
Ok, thought so ... but why I still see people saying I work as Arbtrager ??? in India
Futures/cash arbitrage will always be there, if you know how to trade it.
Did get some advice from HSBC etc at retail level it is not worth it becasue of brokerage + interest on Long position
Brokers are not interested in giving reduced margin because they get nothing from it.
I am referring to Margin loan not reduced margin . by giving a margin loan a broker earn handsome interest with little risk
I don;t know if people are confusing about my question about Margin ,
What I am referring to is something like this
http://www.anz.com.au/personal/investments-advice/products-services/investment-lending/margin-loan/
Or like this
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/8/14/18/2
Further it is possible in Australia ( not USA) to borrow 100% of stock price it is called "Protected Equity Loans" Broker make good money ..
This is how it works
Trader borrows 100% to purchase stock
Broker is happy to give because the condition is Trader a) Purchases a ATM Put thus protecting the loan + b) pays the broker loan interest upfront
Stock remains on trader's name but with custody with broker
It is expensive but people use it for tax purposes
IMO, covered calls are one of the riskiest
Not riskier than just going LONG, the downside risk is slightly reduced
strategies unless collared.
Collar will only protect your position won't make you any money unless you are prepared to take risk ( ATM call sales proceeds bigger than OTM Put sell cost)
You would be much better off trading directionally with small money rather than putting in more money to get peanuts.
Covered call writing can yield even up to 40-50% per year ( with risk attached) so it is not peanuts
