Comment on Zerodha - Margin Policies

Nithin Kamath commented on 06 Jul 2014, 12:09 PM

Nishant, what you are talking about is also called Cash Future arbitrage. If the difference between the stock price and futures price is different from the theoretical price, then this strategy can be employed. So if Reliance is trading at 1000 in cash and future trading at 1020, you can buy 250 shares of Reliance and Short 1 lot of Futures. On the expiry day both cash and future will be trading at same time, at that time the idea is to reverse this trade and earn Rs 20 as profit. Check this post.

View the full comment thread »