Comment on ZT-Spread Orders

Mk commented on 02 Feb 2015, 05:10 AM

DO people trade Index spreads or Commodity spreads? specially agricultural where there is Old crop / New crop ( I am referring to US crops like wheat soya etc)

If I observe the ES s&P 500 ( most popular and liquid index future in the USA) the calender spread hardly moves so there is no point in trading
In case of India does Index spread ?( NIFTY, Bank NIFTY) move that much?

Also does any of the platform show depth of market? ( either of the spread or individual contract

Another sort of related question:
Why people use the word Arbitrage so easily in India for basic spread trading ( intra or inter market)
Is it not misleading? arbitrage means selling and buying exact same thing on two diff exchanges at the same time “GUARANTEEING” PROFIT.
When i hear people saying we will show you arbitrage trading I wonder!

If you are trading a calender spread it is not guaranteed TO PRODUCE A PROFIT
Has this habit developed because there used to be true arbitrage available between BSE and NSE!
Like India us also has multiple exchanges where same stock is traded but the order is routed to NBBO ( national best bid best offer)

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