GOLD Spread : Less risk Good profit

M

myamit

Well-Known Member
#11
#11
TraderPRO said:
Friends,

The price difference between had been increasing for weeks now, from today, I observed it narrowing a bit and hence my suggestion.

Even 200 pts profit will be a good trade but, need patience. Also, be prepared for worst case as well. :)

Good luck Amit.
Click to expand...
Code: 
Date	             Gold 	GoldM 	Diff
01-Aug-13	27934	27905	-29
02-Aug-13	28068	28058	-10
03-Aug-13	28047	28034	-13
05-Aug-13	27856	27860	4
06-Aug-13	27614	27631	17
07-Aug-13	27677	27690	13
08-Aug-13	27913	27916	3
09-Aug-13	27900	27904	4
10-Aug-13	27906	27909	3
12-Aug-13	28923	28931	8
13-Aug-13	28882	28894	12
14-Aug-13	29186	29193	7
16-Aug-13	30755	30797	42
17-Aug-13	30840	30863	23
19-Aug-13	31165	31181	16
20-Aug-13	30812	30819	7
21-Aug-13	31444	31444	0
22-Aug-13	31140	31141	1
23-Aug-13	31905	31907	2
24-Aug-13	31756	31771	15
26-Aug-13	31876	31869	-7
27-Aug-13	33715	33744	29
28-Aug-13	33405	33398	-7
29-Aug-13	33650	33649	-1
30-Aug-13	33034	33057	23
31-Aug-13	32989	33002	13
02-Sep-13	33064	33099	35
03-Sep-13	34439	34471	32
04-Sep-13	32604	32636	32
05-Sep-13	32218	32311	93
06-Sep-13	31861	32003	142
07-Sep-13	31884	32039	155
09-Sep-13	31540	31657	117
10-Sep-13	30753	30890	137
11-Sep-13	30682	30876	194
12-Sep-13	30047	30289	242
13-Sep-13	29571	29915	344
14-Sep-13	30128	30566	438
16-Sep-13	29787	30295	508




Actually price difference has started increasing from 5th Sep (last expiry of GOLDM contract).

Both above are closing of 5-Oct contracts. Such difference never existed & more than earning, I'm interested in learning reasons for such high price difference.

Regards,
 
A

ashu1234

Well-Known Member
#12
#12
TraderPRO said:
Friends,

The price difference between had been increasing for weeks now, from today, I observed it narrowing a bit and hence my suggestion.

Even 200 pts profit will be a good trade but, need patience. Also, be prepared for worst case as well. :)

Good luck Amit.
Click to expand...
Yes, there is 30-40 points narrowing of spread today. Even 200 points of risk free trade is good by all means.
 
A

ashu1234

Well-Known Member
#13
#13
myamit said:
Code: 
Date	Gold Close	GoldM Close	Diff
01-Aug-13	27934	27905	-29
02-Aug-13	28068	28058	-10
03-Aug-13	28047	28034	-13
05-Aug-13	27856	27860	4
06-Aug-13	27614	27631	17
07-Aug-13	27677	27690	13
08-Aug-13	27913	27916	3
09-Aug-13	27900	27904	4
10-Aug-13	27906	27909	3
12-Aug-13	28923	28931	8
13-Aug-13	28882	28894	12
14-Aug-13	29186	29193	7
16-Aug-13	30755	30797	42
17-Aug-13	30840	30863	23
19-Aug-13	31165	31181	16
20-Aug-13	30812	30819	7
21-Aug-13	31444	31444	0
22-Aug-13	31140	31141	1
23-Aug-13	31905	31907	2
24-Aug-13	31756	31771	15
26-Aug-13	31876	31869	-7
27-Aug-13	33715	33744	29
28-Aug-13	33405	33398	-7
29-Aug-13	33650	33649	-1
30-Aug-13	33034	33057	23
31-Aug-13	32989	33002	13
02-Sep-13	33064	33099	35
03-Sep-13	34439	34471	32
04-Sep-13	32604	32636	32
05-Sep-13	32218	32311	93
06-Sep-13	31861	32003	142
07-Sep-13	31884	32039	155
09-Sep-13	31540	31657	117
10-Sep-13	30753	30890	137
11-Sep-13	30682	30876	194
12-Sep-13	30047	30289	242
13-Sep-13	29571	29915	344
14-Sep-13	30128	30566	438
16-Sep-13	29787	30295	508




Actually price difference has started increasing from 5th Sep (last expiry of GOLDM contract).

Both above are closing of 5-Oct contracts. Such difference never existed & more than earning, I'm interested in learning reasons for such high price difference.

Regards,
Click to expand...
So you are interested in reasons behind the spread and not in 200-500 Rs earning opportunity :)
 
A

ashu1234

Well-Known Member
#15
#15
Well one possible reason for this spread is that there is more deliveries in the goldm contract than in GoldMega(just my speculation), so may be there is premium on goldmini coz of delivery pressure and less pressure of GoldMega as most will settle for cash before expiry.
 
M

myamit

Well-Known Member
#17
#17
ashu1234 said:
Ha ha, we said almost same thing at the same time. Sahi tukka hai :)
Click to expand...
Actually I've little different point of view.

If you notice, price difference has started widening from 5th Sep (when last GOLDM contract expired).

I feel small players (who generally trade in GoldM) are long & carrying their position forward in a hope to cover their losses.

Gold contract are being traded by professionals & also last contract expired few months back, it is not showing this pressure.

Let's see how long this continues to behave. My assumption is that this should be corrected in this week itself. let's keep our finger crossed.

Regards,

Note: At 8:10 PM gap has reduced to 450 from 500+.
 
TraderPRO

TraderPRO

Well-Known Member
#19
#19
myamit said:
Actually I've little different point of view.

If you notice, price difference has started widening from 5th Sep (when last GOLDM contract expired).

I feel small players (who generally trade in GoldM) are long & carrying their position forward in a hope to cover their losses.

Gold contract are being traded by professionals & also last contract expired few months back, it is not showing this pressure.

Let's see how long this continues to behave. My assumption is that this should be corrected in this week itself. let's keep our finger crossed.

Regards,
Click to expand...

Good insight.
:thumb:
 
A

ashu1234

Well-Known Member
#20
#20
myamit said:
Actually I've little different point of view.

If you notice, price difference has started widening from 5th Sep (when last GOLDM contract expired).

I feel small players (who generally trade in GoldM) are long & carrying their position forward in a hope to cover their losses.

Gold contract are being traded by professionals & also last contract expired few months back, it is not showing this pressure.

Let's see how long this continues to behave. My assumption is that this should be corrected in this week itself. let's keep our finger crossed.

Regards,

Note: At 8:10 PM gap has reduced to 450 from 500+.
Click to expand...
IMO small players don't have that much capacity to create such a huge difference of 500 Rs, speaking of 5th Sep gold has already fallen on the backdrop of currency and also physical market premium was not there if you track physical market(fyi physical gold is trading below mcx price).
 
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