GOLD and GOLDM price difference.

[neo1599]

Just looking for an opinion:

The current difference in prices between GOLDM and GOLD: 65-73 Rs.

Can this difference exist till trading close for the contract?

Also, I am a bit confused about the expiry/square off system.

Assuming I have a position on the 5th June 2013 expiry contract, which is the last trading day for me? Assuming I have no intention of giving or taking delivery? Is it 31st May or can I hold till later?

 

[dineshN]

It depends mostly with the broker. There is no physical delivery with many brokers.
5 th June expiry contract will have to be settled on 31st May. If you don't square it off, your broker will give u a call (latest by 11 pm) to do so or he will do it himself. If you fail to do so, you will be penalized by the broker.

 

[neo1599]

It depends mostly with the broker. There is no physical delivery with many brokers.
5 th June expiry contract will have to be settled on 31st May. If you don't square it off, your broker will give u a call (latest by 11 pm) to do so or he will do it himself. If you fail to do so, you will be penalized by the broker.

Hi

Thanks for the reply.

Funny close of GOLD and GOLDM today.The closing has a difference of 52 Rs.

Got a message on terminal that GOLD and GOLDM contracts expiring on 5th June won't be available for trading past 7:30pm.

I wonder how the open interest is so high even on supposedly "the last trading day" although going through the contract specs again I don't think its the last trading day per se.

I would love to take a look at the actual delivery stats.

Derivative with same underlying and different price is strange.

Please let me know your thoughts on the same.

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Strange market where a bucket shop can't be distinguished from a STP.

 

[viharpatel]

Hi

Thanks for the reply.

Funny close of GOLD and GOLDM today.The closing has a difference of 52 Rs.

Got a message on terminal that GOLD and GOLDM contracts expiring on 5th June won't be available for trading past 7:30pm.

I wonder how the open interest is so high even on supposedly "the last trading day" although going through the contract specs again I don't think its the last trading day per se.

I would love to take a look at the actual delivery stats.

Derivative with same underlying and different price is strange.

Please let me know your thoughts on the same.

----------------------------------------------------------------------------

Strange market where a bucket shop can't be distinguished from a STP.

I also wondering about this spread. but my broker says u can't hold position untill last day cause delivery period is start.

please share somethin more on this if anyone one have a idea.

 

[ashu1234]

At one point intraday spread between Gold and gold mini was more than 100. And there's no point to discuss spread as you can't gain from this info coz delivery marking period starts after 31st may. Go through this pdf, it explains all.
http://www.mcxindia.com/Uploads/Products/5/Gold Mini May 2013 Contract Onwards.pdf

 

[neo1599]

At one point intraday spread between Gold and gold mini was more than 100. And there's no point to discuss spread as you can't gain from this info coz delivery marking period starts after 31st may. Go through this pdf, it explains all.
http://www.mcxindia.com/Uploads/Products/5/Gold Mini May 2013 Contract Onwards.pdf

Hi Ashu

Go through the pdf again. It says Buyers Intent from 1-4th of the contract expiry month. Please note last date here is 4th.

During this period the Incremental margin increase is a factor but other than that trading does not stop.

Yes the chances of a seller being assigned to me/broker are there in case of a buy position. I will clarify this further tomorrow.

Again I have a very basic question, if I want to take/give delivery or any such. It should be my prerogative and not my brokers. Because unless the exchanges hands out a directive saying all members must close positions at xx time on xx date there is no reason for restricting a market.

And on a more serious note, How much gold actual delivery takes place? I wouldn't mind figures on the same.

Will inquire again.

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These contracts are not futures, they are Deliverable Forwards(as per my understanding). A deliverable forward brought to us by a broker not willing to give delivery?

 

[knarendra]

Symbol Expiry
Date Last
Price Change Chg
% High
Low Average
Price Volume
(in lots) Value
(Rs. Lakh) Open
Interest Open Int Chg
SILVERMIC 30-Nov-13 49,715.00 -791.00 -1.57% 50,780.00
49,225.00 49,815.85 81,139 40,420.08 26,954 1,855
7.39%
CRUDEOIL 19-Sep-13 6,826.00 -117.00 -1.69% 6,987.00
6,804.00 6,879.30 55,927 384,738.52 15,585 1,402
9.89%
SILVERM 30-Nov-13 49,707.00 -796.00 -1.58% 50,749.00
49,226.00 49,823.04 44,778 111,548.80 8,724 908
11.62%
GOLDPETAL 30-Sep-13 3,013.00 -26.00 -0.86% 3,073.00
2,998.00 3,016.27 43,423 1,309.75 21,062 -272
-1.27%
COPPER 29-Nov-13 455.85 -3.40 -0.74% 462.85
454.35 458.66 37,608 172,490.98 18,465 236
1.29%
COPPERM 29-Nov-13 455.90 -3.25 -0.71% 462.50
454.40 458.64 37,597 43,109.05 7,831 959
13.96%
GOLDM 05-Oct-13 29,995.00 -294.00 -0.97% 30,430.00
29,882.00 30,041.50 35,771 107,461.45 13,539 153
1.14%
SILVER 05-Dec-13 49,690.00 -805.00 -1.59% 50,699.00
49,160.00 49,768.68 20,807 310,661.10 4,308 193
4.69%
NATURALGAS 25-Sep-13 232.40 -0.20 -0.09% 234.30
229.70 232.21 20,802 60,380.38 6,523 469
7.75%
LEADMINI 30-Sep-13 131.40 -3.25 -2.41% 135.80
131.00 133.14 20,513 27,311.82 5,764 454
8.55%
GOLD 05-Oct-13 29,713.00 -334.00 -1.11% 30,162.00
29,613.00 29,784.05 19,690 586,447.93 8,621 296
3.56%


The Diff.between Gold - GoldMini is Rs: 282.
Is it good time to buy gold and sell gold mini contract?

 

[knarendra]

Symbol Expiry
Date Last
Price Change Chg
% High
Low Average
Price Volume
(in lots) Value
(Rs. Lakh) Open
Interest Open Int Chg
GOLD 05-Oct-13 30,072.00 501.00 1.69% 30,099.00
29,750.00 30,025.38 1,137 34,138.86 8,020 -47
-0.58%
CRUDEOIL 19-Sep-13 6,904.00 73.00 1.07% 6,918.00
6,855.00 6,897.71 2,376 16,388.96 13,979 44
0.32%
SILVER 05-Dec-13 50,534.00 1,124.00 2.27% 50,669.00
49,550.00 50,499.31 1,029 15,589.14 3,734 -108
-2.81%
GOLDM 05-Oct-13 30,414.00 499.00 1.67% 30,755.00
29,971.00 30,367.40 3,205 9,732.75 12,187 -373
-2.97%

Now the Diff.is Rs: 342/-. What is your View?

 

[Mr.G]

Symbol Expiry
Date Last
Price Change Chg
% High
Low Average
Price Volume
(in lots) Value
(Rs. Lakh) Open
Interest Open Int Chg
GOLD 05-Oct-13 30,072.00 501.00 1.69% 30,099.00
29,750.00 30,025.38 1,137 34,138.86 8,020 -47
-0.58%
CRUDEOIL 19-Sep-13 6,904.00 73.00 1.07% 6,918.00
6,855.00 6,897.71 2,376 16,388.96 13,979 44
0.32%
SILVER 05-Dec-13 50,534.00 1,124.00 2.27% 50,669.00
49,550.00 50,499.31 1,029 15,589.14 3,734 -108
-2.81%
GOLDM 05-Oct-13 30,414.00 499.00 1.67% 30,755.00
29,971.00 30,367.40 3,205 9,732.75 12,187 -373
-2.97%

Now the Diff.is Rs: 342/-. What is your View?

You will have to hold both of them till expiry. Compute in holding cost of all the contracts. And if you are still making money then put in the trade. Even though the profit wont be much and you will be left with no margin for the remainder of the month.Arbitrage rare good opportunities are eaten up in seconds by HFT computers.

Unless you own a supercomputer, a leased line and lots of money dont try arbitrage.

 

[profitpoint]

hi everybody