Arbitrage

The use of TREPS is becoming increasingly widespread as a means to hold cash positions. As per PrimeMFDatabase, 89.71 percent of equity schemes had exposure to cash equivalents like TREPS, CBLO (Collateralized Borrowing and Lending Obligation), or reverse repos in July. In just two months, 18 additional equity schemes have begun using these instruments to manage cash positions.

For banks, arbitrage in TREPS market is opening doors to an easy money route

After the first rate cut, banks enjoyed 10 -33 bps increase in treasury income due to the arbitrage in TREPS market, while after the second rate cut, the arbitrage shrunk a bit to 10-18 bps.

Short Call: Chola the new Raja among NBFCs? IEX rebound, HNIs’ Dubai option, broking wars, and gold

The mood is positive, despite Friday’s correction and the popular view is that the Nifty could make a new high over the next one month if not by the end of May

HFTs, arbitrage firms to face brunt of STT hike, retail traders likely to retreat

Finance minister Nirmala Sitharaman’s 25 percent hike in Securities Transaction Tax by hike on selling futures and options caught everyone by surprise. In the F&O segment, the number of retail investors touched 3.2 million in January 2023, a number that could now fall

BNP Paribas Arbitrage pays Rs 25.08 lakh to settle case with Sebi

This came after BNP Paribas Arbitrage proposed to settle the pending proceedings through a settlement order "without admitting or denying the findings".

Here's what can go wrong in an arbitrage trade

Lessons from an arbitrage trade that went wrong in the Wabco offer for sale

Early options data suggests traders do not expect market to go up until elections

Put options open interest is much higher than those on the call side suggesting a downward bias in the market.

What F&O rollover data says about market direction

Rollovers throw up a number of data points which analysts decode for near term trends.One of the most tracked data is the percentage of future contracts rolled over to the new month

Prime Property: Unitech in real mess

CNBC-TV18‘s Prime Property unfolds the story of Unitech where the top bosses of Unitech were sentenced to jail by not one court but two different courts in two different cities on January 11 th. Also watch Gurgaon‘s Deputy Commissioner T.L. Satyaprakash has set up an arbitrage council to resolve disputes between builders and homebuyers.

Wizard of Dalal Street: Govind Parikh's investment mantra

Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says

How does High Frequency Trading work?

HFT, smart programs driven trading, adds volumes on the stock exchange and reduces impact costs for all investors.

Why you should buy Ranbaxy shares ahead of Sun acquisition

With the cloud of uncertainty vanishing from over the deal, traders can look to exploit an arbitrage opportunity between Sun and Ranbaxy shares.

How to protect yourself against the volatile rupee?

The essential characteristic of a derivative is its value moves in the opposite direction to that of the underlying asset. An individual cannot do without derivatives if he or she is looking at hedging any currency exposure.

Hedge fund returns worsen: Is enormous unraveling near?

The more stocks rise, the further behind hedge funds fall-with the industry now lagging market returns by double-digit percentage points.

What is Speculation/Hedging/Arbitrage?

In “Knowledge Center: Learning Derivatives - Session I”, we gave a brief introduction of derivative contracts. What are forward and future contracts? What is the difference between the two? How they can be used for hedging and speculative purposes? What are Call and Put Options and how they permit non-linear payoffs… and so on.