SGX vs OSE Nikkei futures

Discussion in 'Trading' started by din, Sep 2, 2010.

  1. din


    Hi guys,

    I'm reading some articles about the arbitrage opportunities between SGX vs OSE NKY futures. But confused how the profit can be realized, are the 2 futures contract fungible?
    example, do ppl buy OSE and then short SGX at the same time and the profit is realized immediately? or do they need to wait for the price to converge and closing out the position by making an opposite trade (i.e. sell OSE/buy SGX)

    And usually how long the arbitrage opportunity last? is this strategy really unbreakable?