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JOBBING, ARBITRAGE AND HEDGING OPPORTUNITIES IN INDIA:


There are different kind of peoples active in the markets.

1.INVESTOR :  Investors  have a very long term approach.Short term volatility never mind them.

They always invest based on fundamental study of respective stock or commodity. This cateogaryis normally found in cash market,,not in future or option market.

2.TRADERS : Traders have a attitude of short term to intraday.It may be fora few days or intraday also.Short term aspects are considered and trading is basedmore on Technicals than fundamentals.

3.JOBBERS:This is the most active community of market.Most of the volume comes from the jobbers(apprx. 70%).Main objective of jobbing is to enhance volume for your broker.In turn broker will offer you a very discounted brokerage. Jobbing trades are more in Future & Option market than in cash market.As positions are meant for very small duration in general brokers provide high leverage to jobbers.

It is in advantage of both trader and broker.Jobber with well market understanding and resources have a very nice jobbing opportunities.

4.ARBITRAGERS: Arbitraging means initiate buy and sell position of same script at different markets.

E.g. If copper price at MCX is 420 and at the same time due to any reason price is 445 at ICEX .Then Arbitrager will initiate buy position at MCX and sell position in ICEX.He will benefited when prices will match in future.

5.HEDGERS : Hedging means initiating Buy – Sell position at a same time in similar (not same) kind of scripts.

E.g: In commodity market,prices of Lead and Zinc are expexted to be with a gap of 1-3 rupees,, But sometimes this gap widens to 20-25 rupees.Then hedgers initiate Buy – sell position and get profit when gap start become narrow.

Also,hedging can be done in spot and future market.Suppose, investor have physical Gold of Rs.10L and chances are that prices will fall 20% in near future.Then to protect his profit what options do investor have? First option is to sell Gold owned by him and protect profit.

Second option is to sell equivalant amount of Gold in Futures Market i.e.Hedge the position and book profit at appropriate time.

Purpose of hedging is mostly Protecting the profit and not earn the profit and needs informed decisions to do succcessfully.

Finally one needs to calculate risk taking capacity before deciding its role in market.

There are training institutes to learn jobbing,arbitraging,trading etc.

But,, can we learn bicycles by reading books? or can we learn swimming by observing other? May be NO.It requires interaction with the system and expertise can be achieved with sufficient exposure and experience.


Category: Commodities, Uncategorized

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28 Responses

  1. Urmila says:

    Pl advice for jobbing courses in mumbai

    • admin says:

      Hello,
      As I am not aware about any courses related to this.
      But one can learn and make its own techniques or strategies.

      Thank you.

  2. mehta says:

    Admin plz tell me is there jobbing firm in pune

  3. chauhan says:

    hi admin
    which site is reliable for pries in US$, for gold, kitco or investing.com or netdania or any other suggestion.

    and any suggestion for learn hedging Technic.

  4. sachin KH says:

    want to learn in jobbing .in mcx.

  5. hitesh says:

    i am jobber please send jobbing opining near at akleshwar and bharuch

  6. raju says:

    dear
    i am broker in gujarat can teach me how can increase my volume with jobbing style can help me ? plz mail me

    • admin says:

      Jobbing is more about art & experience of the market.

      As already stated,purpose of jobbing is increase in the volume & there is need of strong psychology to wind up the positions as much quickly.Jobbing can be done with high risk individuals only who can bear the losses ,of course professional jobber can earn average 8-10% daily with same kind of risk.

      One can use techniques like pivot point or graphical support-resistances to take positions.

  7. asif says:

    tell me about arbitraging in mcx . how we start & doing .thrugh make brokrage

  8. mukesh says:

    want to learn in jobing .in mcx.

  9. GIRISH says:

    I am an arbitrager (cash and F&O) with experience of 10 years. looking for a new opening. mail me at gir98@hotmail.com.
    thnx

  10. AMAR says:

    we are providing jobbing as per requiremnt pls mail me if any requirement
    location malad very near to station.

  11. yagnesh says:

    hi my name is yagnesh i done work in mcx market on my pro account but no 1 can teach me wht excactly mcx so pls let me informed dht wher can i joing for d course of jobbing arbitrage and heading

  12. admin says:

    Actually it depends.MCX is a future market and NSEL is a spot market.MCX is better for aggressive and financially sound investors.

  13. Nitin Desai says:

    Which one is better for gold amd silver investment: MCX or NSEL?

  14. Devesh says:

    I was joined for a course of jobbing and arbitrage in Mumbai.Till I have not gained anything in market.

  15. Preetam says:

    How to open commodity trading account?I want to open it.

    • admin says:

      Dear Preetam,,To open a commodity account,,kindly contact commodity broker in your city.
      If you are from Pune,,I can help you to open account with my associate broker.
      Kindly allow me to send details to your e-mail ID.

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