Capturing market spread in Futures

Zerodha Zerodha platforms
1

Hi,

I understand that market spread means to go long at a low rate and at the same time, short at a high price. Thereby assuring your profit.

However, I’m struggling with the order type. If I’m already long (buy) and then I place a short (sell) order; then wouldn’t the “sell” order throw me out of the entire trade as it would sell the contract at which I’m currently LONG?

Is there something I’m missing or is there some different type of order type that I need to use?

Let me know.

Thank you.

2

You need to do this across two different contracts of the same underlying. For example - Long Nifty May contract and short Nifty June contract. Check section 10.2 onwards - http://zerodha.com/varsity/chapter/futures-pricing/