pro-trad

PROFESSIONAL TRADING

Professional Trading is an art as well as science ! At CD Group, professional trading has been a passion and challenge and the Professional Trading Group has been consistently exploiting the exciting opportunities on a daily basis.

Professional Trading is one of the relatively safer ways of making consistent money from trading any volatile market and here money can be made irrespective of bullish or bearish markets, as basically ultra short term trends are exploited by trading strategies and also normally the open positions of a trade does not last long enough which also limits the down side risk of the trades. The more the liquidity and volatility of any market, the more are the opportunities of making money in professional trading. While investors try and avoid participation during some big event days in the markets (like Union Budget, Election Results etc.), such volatile days are some of the best days for the professional trader.

The qualities needed for a successful professional trader are agile mind, quick decision making, fast trade execution, strong risk management and analytical strength. It is an exciting world of trading and the only “constant” here is “change”. Professional Trading is probably the only one exciting and lucrative full time career in the ever changing, erratic, dynamic world of financial markets, and even after being a hands on full time trader, you are still not affected by the vagaries of the financial markets. High volume based professional trading provides liquidity and price discovery in efficient markets.

At CD Group, Professional Trading has been a niche area since the inception of C. D. Integrated Services Ltd., and Parashar Patel himself has been and still is an active professional trader and constantly tries to evolve himself as well as his team of professional traders to stay at the top end of trading activity. The group has evolved a comprehensive in-house training programme, which helps in honing the skills of a trader, from basics to advanced level, and this training programme is a continuous programme, as a trader would need continuous study and mentoring to exploit his skill levels to the maximum.

Professional Trading is a wide area of activities, which mainly contains day trading, jobbing, arbitrage between spot and futures, arbitrage between futures to futures (spreads), options arbitrage, options and futures arbitrage, inter-exchange arbitrage, pair trading, directional strategies, cross currencies and a host of other strategies, which can be exploited by a trader on a daily basis and this is what is being done successfully on a consistent basis since last 15 years at the Professional Trading Group of our company.

Earlier, most of the trading done was manual, a lot of human intervention was required and now with the Regulator approving algorithm based trading, the focus has shifted to automated trading, use of latest trading platforms, trading softwares, latest technology with minimum latency, robust technology infrastructure and risk management systems and human intervention is at its minimum, and the technology and trading strategy is at the forefront of a professional trader. Though the core trading logic remains intact, with changing environment, changing market micro-structure, the manual logic of trading the market can be fed into a computer recognized language / program and after successful back testing of the logic / program / software such created, it can be implemented into the live trading environment and trading opportunities can be exploited. The result of this is that though a lot of time, energy and resources need to be invested to develop an automated trading strategy or program, but once it is developed, back tested successfully and put into live trading environment, this trading program can perform quite efficiently, it can simultaneously trade “n” number of stocks / assets, execute the trades in mili-seconds and being fully technology and logic driven, there would be no emotional intervention.

So, now a days, most of the professional trading desks make greater and greater use of technology and invest in hardware and software resources and as a result, the share of algorithmic trading in the total business volumes of an exchange is increasing by the day.

At CD group, we have taken note of the current trends, can also foresee the future trends and we are also constantly evolving and incorporating the state of the art infrastructure and technology, with the sole objective of staying on the top end of the trading environment, keep our professional traders aware and agile so that they can also exploit the opportunities in automated trading and we are sure that just as in the last 15 years, our professional trading group has been a success story, we shall even be more strong, prepared and ready to face the challenges that future lies in store for us.

Spread Trading / Arbitrage

Spread trading is one of the strategies employed by professional traders, where they take advantage of the prevailing spreads in stocks / indices in the derivatives segment. It is a strategy with hedged position and the profit / loss depends on the spreads between the two month contracts. For example, one is long 1000 Reliance June Futures and short 1000 Reliance July futures, and if the spread moves in his favor, he makes a profit or if it moves against him, he makes a loss.

Options Trading / Arbitrage

Options is also a kind of a derivative contract, which is typical in nature in the sense that for a buyer of an option contract, the loss is limited to the premium payment that he has made and his profit could be unlimited depending upon the price of the underlying. The seller of an options contract limits his gains in terms of the premium amount that he receives but his loss becomes unlimited, if the price of the underlying asset moves against him.

There are various arbitrage strategies possible using option contracts, a combination of futures and options contracts etc.

CD Integrated Services Ltd. 2005 All rights reserved | SEBI SINGLE REGISTRATION NUMBER: INZ000190932 | NSE SEBI Registration No. Cash Segment: INB-231094237 |
NSE SEBI Registration No. F&O Segment: INF-231094237 | NSE SEBI Registration No. CDS: INE-231094237 |
BSE SEBI Registration No. Cash Segment : INB011094233 | BSE SEBI Registration No. F&O Segment : INF011094233