naturalgas Help

[Mr.Rao]

Good to here that u exited at ur SL. Regarding the arbitrage opportunity, following point may be taken into account.
1. Arbitrage on two different month future contract is considered with a view that on expiry prices would try to converge to spot, however here in commodities futures may well expire without converging as they are guided by international contracts which may or may not converge as spot is not a tradable counter.
2. See the last month scenario. Last month future expired at 143 whereas the current month contract was still trading at 163 that moment and i didnt see any convergence.

In my personal opinion , arbitrage on NG may not be such an advisable strategy.
Trade well n take care

Thanks u for ur reply.
If i buy current month and take delivery and sell the future of next month.
so in this we can easily get 60 rupees.Because i am new i have some doubts if i take delivery can i keep it in warehouse for few months? to diliver next month

 

[GAUTSHAR]

Thanks u for ur reply.
If i buy current month and take delivery and sell the future of next month.
so in this we can easily get 60 rupees.Because i am new i have some doubts if i take delivery can i keep it in warehouse for few months? to diliver next month

Theoretically its a good idea but i think in NG u cant take a delivery. though i m not sure on this and need to check exchange site. But even if its possible i think capital deploymeny and warehousing etc. it all may be more difficult than it seem to.
Will check bout its status n let u know.

 

[Mr.Rao]

Theoretically its a good idea but i think in NG u cant take a delivery. though i m not sure on this and need to check exchange site. But even if its possible i think capital deploymeny and warehousing etc. it all may be more difficult than it seem to.
Will check bout its status n let u know.

Thanks you. where can i get answer to this issue?

 

[GAUTSHAR]

Thanks u for ur reply.
If i buy current month and take delivery and sell the future of next month.
so in this we can easily get 60 rupees.Because i am new i have some doubts if i take delivery can i keep it in warehouse for few months? to diliver next month

Checked with my broker. NG has to be settled financially and delivery is not possible.

 

[GAUTSHAR]

hi gautshar bhai i bought crude oil as i see from some finincial sites that it may test 3800-4000 in near term so i buy it, i have no margin problem and as my mind was in teji so i buy it and did not put any stoploss , no planning or stratgery behind buying but now my mind was disturb as i search on some financial sites that states that it may test 65$/bbl and than after it may test 60$ so what i do ?

Dear. considering that u have no issues regarding margin call and seeing that ur position is already in a loss of about 25k, i would suggest that 3270 is a key level as of now. it is 50 percent retracement of the current upmove from 2900 level to 3600 plus levels. Further it is the last llow made by crude in the last dip in addition to it being on an old trendline. Yesterdays closing candle is also supportive of atleast a corrective upmove, However the recent upmove with trendline at subsequent lows at 2980, 3070 and 3260 seems to be firmly broken and the resistance to a fresh upmove is likely to be around 3400 to 3430.
Crux is unless crude breaks past 3400-3430 levels firmly, 3570 seems to be a bit difficult as i see it right now thoough a lot depends upon the price action today so if u see a positive movement and closing today hold on. However keep a stop arond 3250-70 levels on a closing basis and monitor its reaction around 3400-30 levels.
Good Luck

 

[GAUTSHAR]

In addition to my post above, remember that today a key data in US (NFP)would be out and around that time a lot of volatility creeps in so keep the stoploss on a closing basis only else ur stop is hunted unnecessarily in that bout of volatility.