Arbitrage Services Online Dubai

About Us

We offer Arbitrage Services Online Indian Rupee vs. US Dollar is a favorite arbitrage product at DGCX. Our future contract is all the specifications as any Exchange Traded Instrument.

SMC Comex International DMCC, wholly-owned subsidiary of SMC Comtrade Ltd. is a member of the Dubai Gold and Commodity Exchange (DGCX) and regulated by Securities and Commodities Authority (SCA).

DGCX provides SDMA setup for large corporate clients where a client can have API connections with exchange and co-locate their server with DGCX for a better connectivity and faster trade execution. Indian Rupee vs. US Dollar is a favorite arbitrage product at DGCX.

INR/Dollar contract which is also known as DINR is traded on DGCX (Dubai Gold & Commodities Exchange). This contract is a Future contract and has all the specifications as any Exchange Traded Instrument. Same INR/Dollar contract is also traded in NDF Market (Non Deliverable Forward Market) which is basically an OTC (Over the counter) market based in Singapore and Hong Kong. In the strategy, an arbitrage is created between these two contracts.

SMC Group is equipped with in house research wing to provide research support to its trading clients. IT has tie ups with Bloomberg, Reuters and Dow Jones for providing research feeds. In addition the research team also provides various trading calls on daily basis, fundamental as well as technical short term/mid-term/long term investment strategies to our registered clients. SMC also publishes a weekly magazine called ’Wise Money’, on a private circulation basis to selective clients. The publication provides an insight into the financial markets and offers trading strategies to our clients.

How Strategy Works

In such a scenario, the trader would sell the contract in DGCX and buy the same in NDF Markets, and thus locking a profit of 10 paisa.

Now, if this difference comes down, the trader can reverse the position i.e. Buy in DGCX and Sell in NDF and thus can square-off the position or he can simply wait for the Expiry as Settlement would take place at RBI reference rate in both the markets and thus can realize the locked profit on Expiry.

Assuming margin of 5% in both the contracts, this locked difference translates into a return of 1.75%. In practice, the trades would take place as and when an opportunity comes and would be squared off at small profits. This would be done a number of times in a month so as to capture annualized returns of 8 – 12 % net of expenses.

Thus, the strategy is basically a near risk free arbitrage strategy.

Features of strategy:

• Near risk free arbitrage strategy
• Position would be created as and when any opportunity arises
• Use of in-house tools for entry and exit

Advantages:

• Near risk free arbitrage
• Easy to enter and exit
• Striking returns as compared to interest rates in International Markets (1%-2%)
• Huge liquidity in both the markets so bigger funds can be easily deployed

Features of strategy:

• Near risk free arbitrage strategy
• Position would be created as and when any opportunity arises
• Use of in-house tools for entry and exit.
• For more info : https://www.smccomex.com/arbitrage

Mr. SMCComex - Managing Director of SMC Comex International DMCC in Dubai, UAE.