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| You are here: Home > Products > Commodity > Arbitrage |
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Kunvarji having its deep roots in Commodities physical market with over 40 years presence, has built its business in Commodity Futures market. The place of prominence both in physical market and Commodity Futures market available in screenbased trading environment on leading Commodity Futures Exchanges offers a unique opportunity to clients interested in Commodities to simultaneously operate on both physical as well as futures market, enabling them to use the unique opportunity of investing and trading in commodities to make smart gains. |
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| Arbitrage - Meaning & Characteristics |
Meaning
Arbitrage involves least or no risk while trading in a market. An arbitrage trade is basically gaining benefits while simultaneously trading between two different markets.
- It could be same commodity but different contracts, or same commodity and alternative exchanges or even same commodity but futures and spot market.
- Arbitrage is also possible between different commodities. This could be like Guar seed and Guar gum and much more.
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Characteristics
- One of the most important trait of Arbitrage is that there are two opposite positions involved while executing single trade. The trades have to be compulsorily opposite in nature.
- Both the markets have to be compulsorily correlated with each other.
- Trades are compulsorily backed by physical commodity. In other words delivery is necessarily involved.
- The idea of initiating a position is to earn the difference prevailing between two markets, thus the returns are pre decided. These unusual differences are created for a short period of time because of market movements.
- The risk factor is the least when compared to any other form of trading. This is possible because trades are executed in opposite positions and thus market movements would nullify the risks.
- Returns are almost assured when both the trades are executed in most forms of arbitrage.
- Market movements least effect the trade positions
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Kunvarji - Domain expertise
- Domain expertise for arbitrage in commodities comes naturally to Kunvarji because of the rich heritage in spot commodities
- Sensing the future requirements the company started setting up its own warehouses across major commodity centers. -The group boasts of a big network of warehouses across Gujarat & Rajasthan. More of them are being organized as and when needed across regions
- The team for arbitrage holds the key to assurance for quality and complete peace of mind. Seasoned professionals with strong knowledge of physical commodities are at the helm of buying, thus finding the best arbitrage opportunities
- The team constantly hunts for best prices across various commodities with appropriate mix of price and quality
- The buying team in turn gives leverage to the clients to have round the year arbitrage opportunities across different commodities
- The team is based at various market yards across India thus giving an edge. The extensive network results into assurance of best prices while buying and selling commodities in physical market at any point of time
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Kunvarji Network
Kunvarji network comprises of various linkages within the entire spectrum of business. This would include business partners, branches, employees, warehouses, our presence across towns, cities and most importantly market yards at rural level.
- To enable the best linkages in physical market for various commodities, having a presence and network across respective market yards is a must. Our team is present across all major market yards for major commodities traded.
- This includes our own employees across all major market yards in Gujarat & Rajasthan. In addition to these we have our network in form of business partners in all major market yards on a pan India basis.
- Kunvarji warehousing network spans across entire Gujarat & Rajasthan. This include owned warehouses and leased out ones.
- The group, sensing the need, has also complied with various legal requirements like VAT registration across regions.
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Kunvarji's Role
- Kunvarji's domain knowledge and strong linkages in the physical market with heritage of finding opportunities in any market is the premiere reason for anyone to join us.
- Kunvarji is best placed to complete the arbitrage cycle because of the strengths it enjoys in physical market. A difficult task of getting assurance of quality of physical commodity is made easy by our able team in spot market. We claim to be an end to end solutions provider when it comes to cash & carry arbitrage.
- The process for Kunvarji starts from identifying opportunities and overseeing the same till the entire transaction is over.
- Kunvarji takes the responsibility for entire arbitrage on its head and guarantees buy back of commodities at market prevailing prices.
- We provide one stop shop for our clients from buying in physical markets to selling in physical markets, from punching in trades to maintaining a risk free 'handsome return generating' arbitrage.
- One of the most import facilities that we provide to our clients is compliance with VAT laws.
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