Trade in Stock Futures

03/09/2010 01:25

Presently market behaves very little gained or lost due to many reasons.  Some factors pull down the market and some figures pull up the market.  In this market condition, you go for pair trade.

You buy and sell two different companies of same sector simultaneously with same amount.  When both will rise/fall at the same percentage, there will no gain or loss.  But when your buy call will gain more as compared to your sell call scrip, you will gain.  In the same way, if your sell call scrip fall more than your buy call, again you will gain.

For example, one sector which has been confusing market participants is communication. You may go buy call with idea and sell call with reliance communication with same amount.   Like this, there are other sectors too, which gives opportunities.

I hope, this stragegy will work well for the time being with assured gain.