What is going on in the stock market in today's time, nothing is understood, can anyone tell

[Gnome]

@Jason_Castelino

Not possible. Please quote the text from that post. There is no arbitrage possible for retailers.

@Gnome

I was looking at options arbitrage, there is almost no edge in them, all algo trading has removed the edge, very difficult to find discrepancy.

I mentioned that you have said it is impossible to find such things. I just gave a similar example to what you had given in that thread. It will be difficult for me to go back and search all the threads to find that post.

[Gnome]

@Jason_Castelino

There are so many ways in which you can design a risk less strategy.

Let me give one example. The premium that I am stating is just to make arbitrage work.

Nifty spot 17600
Nifty 17600ce at 120
Nifty 17700 ce at 80
Nifty 17800ce at 20

Strategy
Buy 1 lot 17600ce
Sell 2 lot 17700ce
Buy 1 lot 17800ce

Total premium received is 80×2-120-20=20
Premium per lot equals Rs.1000.
No matter where the expiry happens there is profit here. So now only thing to be seen is the margin required for this. Lets say margin required is 1lakh.
Return per week is 1 percent. This is riskless return. So the premium of 17800 has to move up to eliminate this riskless gain.
To get deep OTM premium also you can continue with the same Strategy. Take 17700ce, 17800ce and 17900ce.

This is just one way. There are so many may other ways arbitrage can happen using spot, futures and options.
Sometimes you might see the underlying price coming down. Obviously put value should increase but then call prices also increases. Now this is because of PUT CALL Parity Theorm. Like if it doesn’t hold good then again there is riskless gain.

This one. Slight different strike price than i mentioned.

[Jason_Castelino]

@Gnome

I mentioned that you have said it is impossible to find such things.

Okay. I had understood your post wrongly. Apologies.
May not be impossible. But it’s very difficult. Considering the transaction cost, slippages and effort.

@viswaram

To capture this you need speed or use algo

With algo it might be possible. When I said retailers can’t explore the possibility I was mainly referring to doing it manually.

@Gnome

This one.

Here I was just giving a theoretical strategy of how it can be done. And I also mentioned how it can’t be employed by retailer. Remember there is margin requirement as well.

Anyways. As I always say there is a very good possibility that I can be wrong and may be there are retailers who explore such possibilities.

[Gnome]

@viswaram

I do arbitrage trades all the time. I punch orders manually and the opportunity is there always.

i will show an example. The open price of 43000 ce is lower than the open price of 43100 ce

buy 43000ce and sell 43100ce till the arbitrage ends and then wait for price to normalize and then exit. To capture this you need speed or use algo

Do you use algo? How to do that in our markets? Is that algo software, the image that you have posted?
I tried searching in google most results are from foreign markets and some sites are sketchy providing such information. So asked.

[GB26]

A small bit of advice even though I don’t know completely.

First learn to do it manually on a small scale, 1 lot. Once you know what happens, once you gain experience, you can take the help of code. Code in itself is nothing, it is meant for something, a purpose, for that purpose, to get a particular outcome, we will use code, as the thing consists of finance+technology.

[viswaram]

i do manually

nest trader terminal from kotak

its hard to these type of trades on google chrome

[Akash_Babu]

Today in pre-market session nifty 50 has touched 19000 level but how ?

@Jason_Castelino @GB26 @Gnome @viswaram @SpacemanSpiff

[Gnome]

Yahan pe iske bare mein information hai
https://www.nseindia.com/products-services/equity-market-pre-open
mein bhi abhi padh raha hoon pre market ke bare mein.

[Akash_Babu]

Ye to read kr liye hai lekin smjh me nhi aaya ki aaj pre market session me 19000 touch kyu kiya

[NewUser123]

This is not arbitrage. This is an actual option strategy,

Long Call Butterfly Spread | Butterfly Spreads - The Options Playbook

[Jason_Castelino]

@Akash_Babu

nifty 50 has touched 19000 level but how ?

No idea. Not sure how premarket movements have relevance.

[GB26]

No idea.

That value may be is not considered because that is pre market time and is not trading time. So even if touches technically, it is not taken into account and an adjustment happens, just like adjustments happen after 3.30 PM, so it did not happen, Nifty did not touch 19000.

[Akash_Babu]

The returns from Nifty BeEs are similar to those earned from S&P CNX Nifty.

Here, What is S&P CNX Nifty ?
@GB26 @SpacemanSpiff @Jason_Castelino @jashjacob @VijayNair @viswaram

[GB26]

Because Niftybees is an ETF tracking Nifty, and S&P CNX Nifty is Nifty. S&P is a credit rating agency from US, NSE had agreement with them, CNX means Crisil NSE indices. Crisil is also a rating agency.

Others can chip in

[SpacemanSpiff]

You can google stuff like this. Nifty 50 is Index. Google it. CNX i think has been removed from name. Atleast was removed from the NSE symbols of many indices.

Index is not a traded instrument. Mutual funds try to mimic the index and they have to deal with the reality of real world transactions. But they give similar returns minus expense. Niftybees is popular ETF for this.

[NVM]

With the market technicals also work on the market psychology.
It will help you.
Altering your own psychology will take time but be patient, with time you will adapt the necessary psychological changes.

[Akash_Babu]

Why sebi says that Nifty Bees is very high risk etf for investing

@GB26 @VijayNair @viswaram @Jason_Castelino

[GB26]

Because it is equity, and equity does not grow like debt every year, and it could fall by 20 or even 30%. Many people in our country have the experience of investing in debt products, particularly FDs from banks, so these people may think that equity, be it an actively managed fund or an index fund will give stable returns and more returns than FD.

So as part of educating the public that equity is a separate asset class and is not debt, and there are market risks involved, this warning is given.

For someone who loses 10% in 1 day in day trading, Niftybees looks like FD

For FD investors, 10% fall in value is the loss of 1 and a half years of interest

[Jason_Castelino]

@Akash_Babu

sebi says that Nifty Bees is very high risk

They are taking about market risk and not default risk.

[SandeepBPatil]

Shall i hold Coforge 4050 call bought at 226 or sell it?