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Silver futures trading on MCX exchange offers opportunity to make almost risk free profit
through calendar spreads.
Scenario 1: Towards the end of April 2012, there was a spread of Rs 1700, for July Expiry
Scenario 2: Towards the end of September 2013, there was a spread of Rs 2048, for Dec
Expiry
Risks to be considered:
Returns may vary if there is any error in executing the trades and spread captured is not
viable for delivery arbitrage.
Delivery arbitrage requires VAT registration number of state in which silver is to be
delivered and incomplete documentation and process flow may result in penalties
The arbitrage opportunity is not available frequently and arise in extreme market
conditions typically bear market.
- See more at:
http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?
autono=1669821#sthash.TGWu1vPN.dpuf