Arbitrage Fut sell


I am planning for arbitrage between spot and futures.

My question is I have 125 shares of APOLLOHOSP and wanted to sell 1 LOT AUG FUT.

On the expiry day, I know that my shares will be physically settled or is it netted of position what will be the charges for physical settlement? Is it .25% as mentioned on the website of Zerodha plus 0.1% STT?
Or Is it .1% for the netted-off position plus 0.1% STT?

Is it advised to close the Fut trade and close the spot trade individually?

I want to know the details of the charges.
I have read the SEBI circular but am not able to understand it.

1 Like

Hi @subbu_setti

Brokerage will be 0.25% of total delivery value and STT will be 0.1%. of the contract value.

If one has short futures, on expiry he has to deliver underlying shares.

For net-off to happen, one will need to have ITM Long Call or ITM Short Put position.

That would be the most sensible thing to do :slight_smile:

1 Like