Someone said its guaranteed .
Check for arbitrage opportunity where futures price is more than cash price.
Than buy whole lot of for example currently MSFL spot (cash) price is 420 Rs.and sell futures in may is 431 Rs.
So he said its guaranteed to make 1300x11 Rs. = 14300 Rs. guaranteed.
Is this true…there is no risk in this?
True, but also calculate how much it costs to take this position, brokerage/taxes/margins etc. Also remember there is no free money in markets.
That is why I asked what is hidden in this…it sounds too good to be true…
what is possible risk?
Calculate how much it costs to take this position.
Yes, I have known this, but unfortunately, with technology, arbitrage is a dying breed.
What do you mean?
This will work only on/near Expiry Day as you can’t settle futures on any random day. That too, it will work only if the arbitrage holds till the end of Expiry day.
Less risky as even if you don’t make a profit, chances of losing are minimal.
I did not understand …what do u mean by above? u mean price difference may not be there when it goes near to expiry ? in that case …I might not get the difference (arbitrage)?
Yes … The price difference might not be there at expiry
There are many websites providing calls without sebi registration are they legally liable in future?pls clarify
Sebi can’t take action on all, but one should be careful while following it, should do their own research or consult registered adviser before tasking a trade, end of the day client is totally responsible.