With all the talks of how professionals arbitrage futures and cash price, is it possible to do this within your own online broker? Say I have interactive brokers and I wanted to short the futures and the cash price... Is there a precise way to do this, so that once the prices meet up...you can close both positions. Is this what the basket order function is for? I would think there would be a function to determine how far they are apart from one another point and percentage wise.
sorry that i don't know everything there is to the market....if i did, i wouldn't be here in the first place.
This will explain Index ARB, it is very difficult as a retail investor to exploit any inefficiencies in the spread. You need a lighten' fast broker and the abilty to basket trade the components in an index. http://www.indexarb.com/