Arbitrage..........

[rithikesh]

Hi Mayur.
What system/method/tool do arbitrager's use to identify such opportunities?
Can you explain with some details.
-ritesh.

 

[knarendra]

Hai,
I need arbitrage software for NSE future stocks with 3 months contracts.
Anybody know about it?

 

[valencia]

hello friends.....

I am working as an arbitrager in one of the top brokerage house in ahmedabad.....

Types of arbitrage........
.........

Hi Mayur,

I am interested in arbitrage. Pls clear my queries. If Nifty Future is trading in discount compared to Nifty Spot, then as an arbitrager, you can Buy Nifty Future and SEll Nifty Spot. On expiry day, as future and spot price converge, can make riskless profit. Please explain this how to do this practically.

Do you get this kind of opportunity frequently or very rarely.

Thanks in advance,
RMN

 

[valencia]

take tata steel. spot rate in cash is 222. dec future is 216.35. lot size is 318. now assume you have 318 shares in dmat. sell these at 222 and buy 1 lot in future at 216.35. expiry is on dec 25, on dec 25 aroundd 3:20 PM, sell your future lot and immeiately buy 318 shares in cash. both rates will be same by then. so you got your 318 shares back. profit is 222-216.35 multipled by 318 = 1800 rs. reduce brokerage for transactions. appx 300 rs. net pofit 1500 rs. on 318 shares.

Hi,
Nice example. Now, I understood how it exactly works. Thanks for your valuable explanation.
Happy Trading

 

[ag_fx]

hello friends.....

I am working as an arbitrager in one of the top brokerage house in ahmedabad.....

Types of arbitrage........

(1) BETWEEN BSE CASH MARKET AND NSE CASH MARKET........(AT PRESENT I M WORKING IN THIS SEGMENT......)

EXAMPLE :- IN A MOVING MARKET (VOLATILE) RATES OF SAME STOCKS ARE DIFF IN BSE AND NSE.....DIFF MAY BE IN "PAISA" FOR SMALL SCRIPTS AND BETWEEN RUPEES IN HIGH VALUE SCRIPTS.........SUPPOSE RELINFRA RATE IN NSE IS 1250.60 RS AND IN BSE 1252.10 RS......SO U BUY SUPPOSE 100 SHARES IN NSE AND SELL IT IN BSE................SO PROFIT OF 1.5 RS PER SHARE.......AND DURING MARKET MOVEMENTS MANY TIMES IT HAPPENS THAT RATES OF RELINFRA ARE HIGHER IN NSE ...IT MIGHT HAPPEN FOR SECONDS ONLY....AT THAT TIME BUY IN BSE AND SELL IN NSE.......SO YOUR EARLIER POSITIONS GETS SQUARE OFF.........SUPPOSE U BUY AT 1253.30 IN BSE AND SELL AT 1253.50 IN NSE...........SO PROFIT OF 20 PAISA.....SO TOTAL PROFIT OF 1.7 RS MINUS BROKERAGE......


NSE BUY 100 BSE SELL -100

NSE SELL -100 BSE BUY 100

----------------------------------------
NET QUA. 0 0

REMEMBER IN CASH MARKET U HAVE TO SQUARE UP POSITIONS AT THE END OF DAY.....IN OUR CASE (CASH ARBITRAGERS) BROKER DONT CHARGE US ANY BROKERAGE.....ONLY STT AND OTHER TAXES APPLIED.......THAT IS 1900 RS PER 1 CRORE TURNOVER........................FOR NORMAL INTRADAY TRADER IT IS 2900 RS TO 4900 RS PER CRORE.......SO MAIN ADVANTAGE IS THIS......

(2) BETWEEN CASH (NSE OR BSE ) AND NSE FUTURE................

WHICH IS ALLREADY EXPLAINED.........

(3) BETWEEN CURRENT MONTHS FUTURE AND NEXT MONTHS FUTURE....

ACTUALLY THIS IS ALSO KNOWN AS SPREAD.............

IF ANYONE HAVE ANY QUESTIONS REGARDING THIS, FEEL FREE TO ASK......
MOST WELCOME......................

How do you spot such oppurtunities? I mean by the time you spot there is an arbitrage available and try taking a position on it, it might just go off...How do you manage the fast execution required to profit from it? Do computers place order(as we see in US mkts) or do you do it manually?

 

[ag_fx]

Hi Mayur,

I am interested in arbitrage. Pls clear my queries. If Nifty Future is trading in discount compared to Nifty Spot, then as an arbitrager, you can Buy Nifty Future and SEll Nifty Spot. On expiry day, as future and spot price converge, can make riskless profit. Please explain this how to do this practically.

Do you get this kind of opportunity frequently or very rarely.

Thanks in advance,
RMN

You cant do this kind of arbitrage....you cant trade NIFTY SPOT as an entity...Nifty is a value derived from a basket of 50 stocks and is not tradeable. Only nifty futures are tradeable.

 

[LOVETHEROVER4]

hello sir

i m currently working in karvy stock broking and want to enter in arbitrage.actually i am planning to join bonanza for learning arbitrage it will worth 45k.should i go for it or i should opt another way of sitting and watching behind arbitrager?plz help me out i am getting restless plz

 

[ag_fx]

hello sir

i m currently working in karvy stock broking and want to enter in arbitrage.actually i am planning to join bonanza for learning arbitrage it will worth 45k.should i go for it or i should opt another way of sitting and watching behind arbitrager?plz help me out i am getting restless plz

45k for learning arbitrage?I sont know buddy..never been an arbitrager myself...see wat kind of roles they offer u post ur course...hw will u be able tomake back dat 45k?

 

[LOVETHEROVER4]

dude they are saying that they will place me in firms or if if i want to be with them they are providing me job of 8k and incentives of 20 to 80 % what i earn as a profit for them?tell me dude is it a good deal?

i hv an other option also my frnd is a arbitrager he has no probs if i approach him!but my main concern is will i learn like a institute or not?does going in a institute give me a edge

 

[ag_fx]

dude they are saying that they will place me in firms or if if i want to be with them they are providing me job of 8k and incentives of 20 to 80 % what i earn as a profit for them?tell me dude is it a good deal?

i hv an other option also my frnd is a arbitrager he has no probs if i approach him!but my main concern is will i learn like a institute or not?does going in a institute give me a edge

My suggestion...SAve 45K....learn from urself online...work with ur friend and learn the practical aspect of the work and for 5 months, pay urself 8K from the course fee u saved..

U will be better off