Spread Trading - Strategy & Calculation

[sumeetsj]

hey thanks for the useful details

yes I think entering in the last hr is a good strategy but in dat case it will be delivery based and that will result in 10 times more brokerage.. is the deal still good enuf or there is some other strategy where intraday is possible and hence lower brokerage

Thanks in advance
Manik

ten times more brokerage ???

 

[maigden_comm]

yeah.. .02% for intraday and .2% for delivery..!!

 

[mehtaka]

yeah.. .02% for intraday and .2% for delivery..!!

Do verify with your brokerage house.
What u said is applicable in equities that too in cash. (for cash intra day is .02% and delivery is .2%)

All the trading in future will attract .01%-.05% (min-max)..
if you take delivery also, it will be the same brokerage but both side.

I am trading with R.K.Global..they are charging flat 9 rs both side (intraday or delivery).

Also the spread sheet which is der, it usually for delivery based.(sumeet has pointed out)

again do verify with your brokerage house, if its what u said, then its time to change.

 

[sumeetsj]

I second Mehataka's opinion
And if any brokerage house is doing that to you then its overkill and to be reported

 

[maigden_comm]

hey guys

Thanks a lot.. I need to get to back to d brokerage house soon.. :annoyed:

thanks for the valuable info..

Manik

 

[maigden_comm]

hi all

can we do gold spread trading..??
can anyone please calculate the basic brokerage for selling/ buying 1 lot of gold.. if going by rs 9 / lot.. lot size 100.. hence brokerage 900 rs
is it so??

thanks in advance

Manik

 

[sumeetsj]

9 Rs. brokerage/ lot means for 1 lot it will be 9 rs. Need not multiply it with lot size.

In gold/silver there will be a calender spread.

http://www.traderji.com/commodities/48665-calender-spreads-gold-silver.html

 

[1sandeepgupta]

Dear sir,

Please there are two questions

1. What are the circumstances that one can occur loss in Spread Trading. Please elaborate.
2. Does bull, bear or sideways movement of price affect the spread trading or it is just the spread gap.

Thanks,
Sandeep.

 

[sumeetsj]

Loss can occur in case the spread gap keeps increasing for some unknown reason. You have to use stop losses

 

[1sandeepgupta]

Loss can occur in case the spread gap keeps increasing for some unknown reason. You have to use stop losses

Dear sir,

Can you please give some example to illustrate the above point.

The other question is if bull, bear or sideways movement of price affect the spread trading or it is just the spread gap.

Thanks,
Sandeep.