how to do the future and NOW hedge/arbitrage method?

can anyone show me?

I only do the dow index (NOW) cfd previously. I do NOW and NOW cross market hedge sometimes...

I just noticed that Sep dow future is 8600 and dow index cfd now is 8520...

(8600-8520)/8500=1% diff not big but if I hold till end of Sep this is a sure profit for 3 month??? (if 5x leverage it's 5% over 3month? not bad)

anyone could help point out if I am wrong thinking of doing like that?

problem is no broker is offering doing index cfd and future at same acc (can delta?) so have to do at 2 broker and p/l cannot be hedged...

If only it was that easy.

The cash index, or in this case CFD, trades with the future within a spread which narrows the closer to expiration of the futures contract.

How about just looking at a calander spread for the front month and nearest month for the YM contract?

I found they charge something called storage fee.
like WTI0809 -> 0909 will be 1$ up.... like that.

You forgot about interest.
You would need to sell futures at 8600 and buy spot dow at 8520 to get this one percent. But you forgot that on dow spot you have to pay interest and thus this difference (80 points) is the interest you would have to pay.
Remember that futures already include interest payment whereas spots don't, thus such a spread.

Yea... arbitrage isn't that easy. If it was you'de see people like warren buffet doing that shit all day.