For any stock If current month future is higher than next month Future price, Can we do Arbitrage trading in Future ?
When the trading will be squared off ?
Yes, you can.
Sell the current month future
Buy the next month future
Square off:
When the current month future expires
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It would usually be if there is an expected dividend in the next month. But if your expectation of the size of the dividend or its record date is different from the market, you can surely take a position on the basis of it.