I always see price difference between gold and gold mini contract. was wondering can i buy 10 lots of gold mini and sell one lot of gold ?
If you enter these 2 trades, and if the difference between goldm and gold reduces, then you make an arbitrage profit. If the difference increases, then you make a loss.
Someone please correct me if wrong.
why there is still a difference of about 150 points in the gold and gold mini contracts Feb expiry the difference has been there since December and I have been watching them since then and closest they converged was for 50 points which was about a week ago and now close to the expiry dates of both the contracts they have again diverged by 150 pints.
Why is it so?