Dear Sir,
Allow us to share our derivative hedge strategy which has proven track record of generating 36% yearly return from stock market irrespective of fall or rise in stock market. Our market neutral strategy is designed for the investors who want regular return which is much higher than bank fixed deposits and at the same time safeguard their capital. The strategy safeguards you from fall in stock market. You may like to have answer of following questions.
What is derivative hedging?
Derivative hedging is a tool for remaining market neutral. Under this strategy buying and selling take place at the same time so that investor remains market neutral. For instance, if we purchase HDFC Bank future worth Rs 3lacs , we will be selling at the same moment some other bank future say SBI Future of equal amount. In summary you are Rs. 3lac long and also Rs. 3lac short. This makes your exposure in the market to zero.
How do you make money if you are market neutral?
In a market neutral scenario, you make money in one deal and lose money in other deal. You square off both the transactions, once you make net profit. For instance take the live example of SBI and HDFC Bank as illustrated below :
Transaction date Security Price Buy/ sell Qty Value Squared off Date Price Value Profit/ Loss Net Gain 2nd Dec’10 SBI 3112 -96 -300,000 14 Jan’11 2498 240000 +60,000 2nd Dec’10 HDFC Bnk 2408 +124 +300,000 14 Jan’11 2061 256000 -44000 16000
an investment of Rs 3lac.
How much investment is required in derivative hedging?
Derivatives work on margin concept and as such you can collateral your existing stocks, Mutual Fund, cash, Liquid fund ETC. You require minimum investment of Rs 10 lacs which can be in stocks, Mutual Fund, Cheque, Liquid fund etc depending on your risk taking ability.
Why can’t you work with smaller money?
Since the strength of derivative hedging lies in taking multiple positions, we need to keep higher margins.
Have you lost money anytime?
As we said, hedging is the most secured way to make money in stock market, we have not lost any money in the past.
We are sure you will not like to miss a golden opportunity of making safe money from stock market call us or sms us HEDGE on 09967616357.
Regards,
Team - Stock 24x7.
