General Trading Chat

[aja]

Kal market chalu rahega
Jam ke Satta khelo yaaro

 

[Smart_trade]

Actually if someone can devise a almost risk free strategy,he can put few crores on it ....but unfortunately there is no such strategy.Many people say risk free but there is some risk in it....one cannot put large sums on it and be relaxed....returns could be as low as 2% per month.

Smart_trade

 

[varunkochhar]

These people employed their funds very judiciously. Say for example if the index fell by 3% in a particular expiry and they were holding 100lots equivalent. They would increase their holdings by 3% more so 103 lots by using this 3% fall. Now they were earning this arbitrage for 103 lots. The bonus and icing on the cake was the tax free dividend they would receive from the underlying shares. This was a very well thought off plan.

 

[varunkochhar]

Sir 2% permonth risk free would be grabbed by the HNI's anytime. Not many business give a risk free return of 2% permonth on large deployment of capital.

 

[Subhadip]

Risk free not there. But controlled risk is there

 

[varunkochhar]

If one can be assured of 2% permonth he would easily borrow at 10-11% per annum from banks and live off the arbitrage for ever. I am talking of large sums (In excess of say 50CR) the take home returns would be more than 50lacs month after month. Even on 5CR it would mean 5l month after month.

 

[varunkochhar]

Sir what could be the risk of selling future against the underlying.

 

[Smart_trade]

Sir what could be the risk of selling future against the underlying.

That is almost risk free....but I have done that on Nifty and some stocks....the returns are not more than 6-7 % per annum....in some stocks in some months it can go to 10 %...not more than that....we need money for both ,buying the underlying stock and also margin for selling the futures.

Try it yourself....

Smart_trade

 

[princy01]

Why not take some risk and make 30% per month, the only issue will be increasing base capital

 

[varunkochhar]

I think if you have an equivalent of lot size in cash shares, then brokers do not insist on margin for selling futures.