Comment on ZT-Spread Orders

Nithin Kamath commented on 02 Feb 2015, 11:53 AM

Spread trading is not very popular in India, especially because of higher trading costs (the STT/CTT which is 0.1% makes it nonviable). There is a decent bit of spread trading on agri Commodity by people who understand the crop cycle of the underlying well.
You do get opportunity on Nifty and Bank nifty, but hmm.. don’t think it is worth the effort. Usually the middle/far months are not as liquid as the near month contracts. So most of the times, getting a fill becomes really tough.
There are many words used here which just doesn’t add up, arbitrage being one of them. Indian capital markets are quite young compared to the US, but I am sure we will catch up in the next 5 to 10 years.
NBBO is called smart order routing in India, offered by only a couple of brokers till now. We are looking at offering it by the end of this year.

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