hi marimuthu,
if someone is buying one (apr) contract and selling another (may) contract, lets say for example CRUDEM, will the rates converge / diverge on expiry (of apr contract).
at this moment APR CRUDEM is trading at 3421 and MAY CRUDEM at 3461. In two days time will 3421 tend to rise towards 3461 (or) vice versa.
why this is important for me. Its because I lock my profit and loss in APR contract in MAY. In other words, I tend to place my buy order in APR and sell order in MAY. Thats why.
if someone is buying one (apr) contract and selling another (may) contract, lets say for example CRUDEM, will the rates converge / diverge on expiry (of apr contract).
at this moment APR CRUDEM is trading at 3421 and MAY CRUDEM at 3461. In two days time will 3421 tend to rise towards 3461 (or) vice versa.
why this is important for me. Its because I lock my profit and loss in APR contract in MAY. In other words, I tend to place my buy order in APR and sell order in MAY. Thats why.