Safe trading - Arbitrage

[lokanathpai]

What is it that we are missing over here? how is the pnl being projected as 32,850?




View attachment 45950

You are correct.

I hurriedly committed a mistake.

Future shorted at Rs 197.50.
Settlement done at Rs 186.55
Diff 197.50 - 186.55 = 10.95
Lot size 3000
Gain by shorting 10.95 x 3000 = 32,850
On settlement I surrendered my holdings of 3000 shares of ZEEL.
Realisation thereon I got 3000 x 186.55 = 559650
Total realisation 559650 + 32850 = 592500
Initial investment 3000 x 193.95 = 581850

Profit 592500 - 581850 = 10650

On 581850 it is 1.83%
For 12 months it is 21.96% which is more than Bank interest.

 

[lokanathpai]

On 18.05.21 I found another Arbitrage opportunity in MRF
MRF spot was quoting 79200
MRF Futures 24-06-21 expiry was quoting 79912
MRF lot size is 10

I bought 10 shares of MRF costing 792000
I sold MRF futures 10 x 79912 = 799120
I will gain Rs 7120

 

[lokanathpai01]

On 27.05.21 I sold my MRF holding @ 83000.00 and Squared off MRF futures @ 83000.00.
In cash I gained 83000 - 79200 = 3800 x 10 = 38000. In futures I lost 83000 - 79912 = 3088 x 10 = 30880.
So net gain is 7120.
On 792000 it is 0.9% profit.
Annualised 0.9 x 12 = 10.80% which is again more than Bank interest.

 

[Spartan15]

Sir,

While you have described your trades well. You have not mentioned the total charges incurred on these transactions. Kindly post a screenshot for better explanation or just add another line mentioning the total charges and then Net Profit after deduction of charges.

You are correct.

I hurriedly committed a mistake.

Future shorted at Rs 197.50.
Settlement done at Rs 186.55
Diff 197.50 - 186.55 = 10.95
Lot size 3000
Gain by shorting 10.95 x 3000 = 32,850
On settlement I surrendered my holdings of 3000 shares of ZEEL.
Realisation thereon I got 3000 x 186.55 = 559650
Total realisation 559650 + 32850 = 592500
Initial investment 3000 x 193.95 = 581850

Profit 592500 - 581850 = 10650

On 581850 it is 1.83%
For 12 months it is 21.96% which is more than Bank interest.

On 27.05.21 I sold my MRF holding @ 83000.00 and Squared off MRF futures @ 83000.00.
In cash I gained 83000 - 79200 = 3800 x 10 = 38000. In futures I lost 83000 - 79912 = 3088 x 10 = 30880.
So net gain is 7120.
On 792000 it is 0.9% profit.
Annualised 0.9 x 12 = 10.80% which is again more than Bank interest.