Thanks traded and anurag.
My plan is to buy 1 lot of stock on first day of series and hedge it by shorting futures. In process I earn a risk free premium. Lets say stock is trading at 0.6 % premium. I ll get if not 0.6 then atleast 0.5%. But before expiry I need to rollover. I cant leave the stock without the short futures. Based on anurags answer the future may close higher or lower than last 10 mins prices. Also I wont be able to liquidate stocks. I may leave the current future to settle and additionaly short next expiry future but i am not sure if its worth taking trouble
you are very correct.. but probably you did not pay heed to the query..
he wants to do intraday arbitrage from cash to futures on expiry day..
agreed, futures 'contract shall be settled as per the closing price of cash determined by exchange on that day'...
pls tell me how he would settle his cash position??
My plan is to buy 1 lot of stock on first day of series and hedge it by shorting futures. In process I earn a risk free premium. Lets say stock is trading at 0.6 % premium. I ll get if not 0.6 then atleast 0.5%. But before expiry I need to rollover. I cant leave the stock without the short futures. Based on anurags answer the future may close higher or lower than last 10 mins prices. Also I wont be able to liquidate stocks. I may leave the current future to settle and additionaly short next expiry future but i am not sure if its worth taking trouble
you are very correct.. but probably you did not pay heed to the query..
he wants to do intraday arbitrage from cash to futures on expiry day..
agreed, futures 'contract shall be settled as per the closing price of cash determined by exchange on that day'...
pls tell me how he would settle his cash position??