(MCX GoldM + Fixed Deposits) vs Gold Coins as Investment for 10 Yrs Time Period

Nikhil Dogra

Well-Known Member
#21

msa5678

Well-Known Member
#22
If you have cash amount equivalent to the lot size value then consider keeping 90% of the funds in a liquid debt fund & deploy 10% as margin to hold "short near" future calendar spread i.e. short near month contract & long far dated contract. This could potentially yeild 10%-12% annual returns at relatively less risk.
Is it not the other way round, I mean short far month and long near month future, as the premium on the far month will always be more than the near month.

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Nikhil Dogra

Well-Known Member
#23
It will depend in situational context if i were to be honest. If you can construct dynamic charts of the spread on 30min/60min or any other timeframe apart from Daily and then apply TA on them we can position ourself in any way as per the extreme deviations
Short near or bear fut spread we aim for the spread to widen and in long near or bull fut spread to narrow.

Short Near = Far Future Ask - Near Future Bid
Long Near = Near Future Ask - Far Future Bid
 

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