vishnuvega
29-05-2008, 06:56 AM
There may be opportunity for netting more profits in crude oil futures. Indian companies, with an arm in Dubai, can now keep an eye open for arbitrage between Mumbai-based MCX and Dubai Gold and Commodities Exchange (DGCX), the top exchange in the Middle East.
DGCX on Tuesday launched cash-settled West Texas Intermediate light sweet crude oil and Brent crude oil futures contracts. Both contracts appear to be a runaway hit with local punters as DGCX recorded its highest first-day volumes exceeding $370 million.
Crude is also the most popular contract on MCX. More than 29,000 lots of the June contract were traded today, with the gold June contract a distant second at 18,533 lots. Indian companies that are trading on MCX and have a subsidiary that trades on DGCX can use the slight price difference in crude oil contracts on the two exchanges, which is created largely by the dollar-rupee exchange rate, to make risk-free profits at the end of day.
DGCX on Tuesday launched cash-settled West Texas Intermediate light sweet crude oil and Brent crude oil futures contracts. Both contracts appear to be a runaway hit with local punters as DGCX recorded its highest first-day volumes exceeding $370 million.
Crude is also the most popular contract on MCX. More than 29,000 lots of the June contract were traded today, with the gold June contract a distant second at 18,533 lots. Indian companies that are trading on MCX and have a subsidiary that trades on DGCX can use the slight price difference in crude oil contracts on the two exchanges, which is created largely by the dollar-rupee exchange rate, to make risk-free profits at the end of day.