General Trading Chat

[Subhadip]

SGX NIfty 9130 ( It is April futures in SGX now)

ST

9092 at SGX in mar contract

https://sgxnifty.org/

 

[Smart_trade]

9092 at SGX in mar contract

https://sgxnifty.org/

My 9000 puts sold look more safe now....

ST

 

[varunkochhar]

Just wanted to tell some people who would not be knowing that there are people (Mostly HNI's and some FII's too). Who only do arbitrage based on the premium of Nifty/Bank Nifty. (By buying the constituents of Nifty/Bank Nifty in its exact ratio) and then selling the futures every month there by raking in 1-1.5% every month safely. They just have to buy the shares in this ratio once and sell Index Futures every month. This method is the safest for them and gives better returns than bank FD and are safe as well.

 

[varunkochhar]

this is in response to the discussion in Subhadip ji's thread.

 

[Smart_trade]

Just wanted to tell some people who would not be knowing that there are people (Mostly HNI's and some FII's too). Who only do arbitrage based on the premium of Nifty/Bank Nifty. (By buying the constituents of Nifty/Bank Nifty in its exact ratio) and then selling the futures every month there by raking in 1-1.5% every month safely. They just have to buy the shares in this ratio once and sell Index Futures every month. This method is the safest for them and gives better returns than bank FD and are safe as well.

One gets 35-40 points on investment of 9000...much less than bank FD ...so this arbitrage is not attractive even to Vyaj Badla financiers...

ST

 

[varunkochhar]

one can do the same by buying niftybees and bankbees equivalent to the lot size once and keep selling futures at the beginning of the month to get the premium.

 

[varunkochhar]

Sir today also the premium is about 60 points for next month. This usually goes upto 0.75% to 1% premium per month. The FII's get their funds at close to zero % but yes currency fluctuation is there. If they get a roi of more than libor rates (i think they are at 1% per annum) with safety, they are more than happy.

 

[Smart_trade]

Sir today also the premium is about 60 points for next month. This usually goes upto 0.75% to 1% premium per month. The FII's get their funds at close to zero % but yes currency fluctuation is there. If they get a roi of more than libor rates (i think they are at 1% per annum) with safety, they are more than happy.

Not attractive for us...if one gets money at 2-3 % interest then ok....for us to put our money we must get at least 9-10 % per Annum net of all charges and this arbitrage does not give that returns.I have actually tried that with own money...on 30th when we roll over,premiums will not be more than 40 points.

ST

 

[varunkochhar]

Yes sir you are right. This discussion was just to tell somebody that the arbitrage opportunity exists and is used by FII's because of the "Fallacy". I hope you understood.

 

[aja]

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