futures arbitrage question

Discussion in 'Trading' started by z32000, Aug 4, 2007.

  1. z32000


    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.
  2. Surdo


    Stick with trading corn futures, I here you can ARB the futures vs. your garden Via IB.
  3. z32000


    sorry that i don't know everything there is to the market....if i did, i wouldn't be here in the first place.
  4. Surdo


    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.