Arbritage in Commodities.

#1
Dear Freinds,

I want to know how to arbritage in commodities?

Fo example if i buy spot guar at 2000 and sell in futures in 2050 and then square up my position when the contract expires what will be my profit.

Will appreciate if explained in detail.
 
#2
INR 50 per unit will definitely b eyour gross profit. Net profit will depend upon:
1) transaction costs (including taxes) involved in spot as well as futures mkts.
2) Storing cost of physical item (include space, labour, and all type of protection from insects, moisture, fire, theft etc.)
 

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