Discover short term(1-3 months) investment opportunities that have guaranteed returns (18% or higher)
In the market at times, there are opportunities where there is a small difference in the price of the same asset, for example, the sum of the price of a put and call spread of NIFTY between 22,000 and 23,000 three weeks from now will be less than 1000. So if I buy both these spreads and wait for three weeks, I will pocket a small profit. Normally this difference is very small about 1.5% or less, but they are at no risk, as we will get it irrespective of market direction. Such opportunities are termed as financial arbitrage. This specific example is called box spread, more details can be found in its wiki page.
There are many other such arbitrage operations. Not all arbitrage operations can be executed profitably all the time as borkerage and other overheads negate the riskless profit, however when it is completed, it becomes a riskless investment with a known return.
How it works