See the above quoted for why I wrote a scathing reply to the thread.
Just BTW, discussion is good, but saying something is risk-free/minimal with an upside 4x Risk is a great way for someone to get their account blown.
Let me put it up this way:
1- The upside max: 50k(as per thread assumption)
2- Max Loss: Open
3- Time-frame to exit/carry: 15 days.(calculate CoC)
4- Incase of requirement to carry the position(assuming you get the same opportunity in the next contract, which in itself is asking for a lot), margin requirement and risk appetite will change drastically.
Being cool has nothing to do with trading, I would rather be prudent.
Edit:
Almost Forgot:
In the thread there are many statements/posts which read as risk-free, assured returns, arbitrage, hedge. May be the meaning behind them is to discuss but sure does come across as: We know this as fact.
While the OP is still clear and somewhat keeps asking to understand it better.
Cheers
At the time of posting: Difference: 43x
Bhai why are you riding your own scooter....
See the very first post — Max loss very well defined as 5000–10000 which means one will squqre off position if spread increases to 550-600 thats it.
Already said that spread might or might not narrow to 500 before 1 oct and in between if one gets opportunity be it intra of more than 200 points then fair enough book it.
So dont ask us to re read our post, i guess the people who wanted to discuss this spread have already understood every term with the flow of the thread.
Calling the trade as risk free was in context to comparing it with naked one sided position, so don't shoot us if u miss the "bhawna" behind the twisted words....see i can also feel the pain of killing the holy terminology of arbitrage and hedge.
Now coming to the point of margin yes i can make it happen sub 1 lac and yes to your
surprise all white....and for dabba its way below sub 50k.
Fyi dont u know what Nsel is doing nowadays....recovering debits from the members.
So enlightened you with this hint, without margin account me debit aa jata hai so i only
said that if i want i can make it happen sub 1 lac. See I do real trading and know all the requirements very well and for calculating roi for trades i dont need calci or big fundas like holding costs etc etc, spare it for valuation of equity only....sounding geeky with terms might make one proud and doing research and claiming that you know everything and other have no idea of what we are dealing with is nice way to boost
self esteem.
So if you think that we are sitting ducks.... so let us be mr Hunter!!!