Recent content by nmelwani

me too.. normally the SSF prices in interest and hence trades for a slight premium. but with IBs margin requirements and leverage - seems like 2-3% per month. too high for a risk free trade.. whats the catch ???

since there is no capital at risk, only 5% of the nominal amount used as margin - ROI was calculated as return on money locked up (i.e. the 5% margin amount). what I'm trying to get from my fellow traders is: is there any risk ?

the 0.05 was taking into account the spreads (Bid-ask)... On IB you can set a combo order EFP (buy share, sell ssf) and the trade showed net credit of $4.5 (0.50 for commission). put the trade on for 1 lot to test. was wondering if there were any actual risks??? Liquidity is not the issue...

Commission is $0.50 per lot on IB (that is $0.50 to buy 100 shares and sell 1 ssf).. No Funding costs (as you are long $15,000 and short $15,000 nominal values). Net change is funds is the $0.05 (* 100) positive into your account. No equity / market risk. No Dividend risk. No funding risks...

EFP - Exchange for Physical (from OneChicago.com) what are the Risks of the selling a EFP (i.e. Buy Shares, Sell SSF) ? Trade breakup - Long 100 Shares, Short 1 Single Stock Future. using the NO.DIV-Risk SSF from ONE - seems like the dividend risk is also out of the equation. Example: Buy...