Trading in commodity market - About arbitrage
Dear traderj
Iam Bala from chennai . Iam new to commodities . I reffered some sites about Trading Gold futures. Still it is something confusing. In geojitwebsite they had given
"Arbitragers
Arbitragers are those who benefit from arbitrage i.e. taking advantage of price differences arising between the spot market and futures market.
Example : December spot price is Rs.5875 and January futures price is Rs.5950. Arvind buys in spot and sells in futures to gain an annualised return of 15.31%."
In this case how to trade commodities in cash price and sell in the futures. if the futures price is higher than the spot price .can we sell in cash . Anybody trading in commodities please explain me how to trade with minimum less risk with limited profits.