Hi Kb, what happend to my que......doc

Hi CB, meet u at 8 o clock

Hi cb
I want to know about sbi support for next week.

Hi yogi, sure. have a good evening

Hi manoj, has good support near 5780-5800. below this could see some profit booking

Hi punit, has strong support much lower near 2600. next small support is near 2680

Hi palanivel, m doing good. hope you good too. it has strong resistance near 635. hold it. if markets correct a bit, it can see 615

Hi suzane, yes. best to hold for long term. :) will do well

Hi manoj bansal / Kb,
Arbitrage is SIMULTANEOUSLY BUYING AND SELLING of securities across markets to gain from the price difference that exists.
IT DOES NOT MATTER WHETHER A PARTICULAR BROKER ALLOWS IT OR NOT.

An example can be:
Suppose at any point in time Reliance Industries (Equity) is quoting at Rs. 1000 in NSE and Rs. 1000.90 at BSE. Now a person will SIMULTANEOUSLY buy Reliance@1000 in NSE and sell it @1000.90 in BSE. This buying & selling usually happens within 1 second. The person thinks that the price difference in both the exchanges should not be 90 paise but should be less.
Next, within the next few seconds (ranges between 1 to 10 second), let us assume that the price in NSE has gone up from Rs. 1000 to 1000.25 & the price in BSE has come down from 1000.90 to 1000.50.
At this point the person very very quickly, reverses his two trades. This means he sells and square off his open position in NSE @ 1000.25 (gain of 25 paise in NSE). SIMULTANEOUSLY, at that very instant, he also buys at [email protected] (gain of 40 paise in BSE).
In reality, all these four trades happen within a few seconds.
This is a very classic example. This, so called risk-free opportunity, may or may not be present always. Sometimes prices in NSE & BSE both increases with the same gap or with less gap. Sometimes, prices in one exchange increases while prices in other exchange remains the same. Various other permutation & combination also can happen.
So, a person has got to be very careful while arbitraging or he may be stuck.
In reality, people who do arbitrage, do these kind of 4 trades in a span of 4 to 8 seconds. Otherwise, they immediately come out of their open positions with losses (howsoever little it may be). They never leave their positions open for more than 10 to 12 seconds.
So, basically very small profit/loss within a very short span of time.
For doing arbitrage a person should :
1) agree to pay the least possible amount as brokerage to the broker.
2) have a very fast and stable internet connection
3) have a reliable and fast trading software (terminal)
4) be very fast on the keyboard with a high level of accuracy
5) have a very keen eye to spot price difference (of the same security) to know whether that price difference will allow him to go for arbitrage.
6) literally break-off his NUM LOCK key from the keyboard (imagine the reason why I say this)

Hi CB, Hope this information will be useful to all who are thinking of going for arbitrage.

WelcomeCB,

good evening cb,abdullah and kartik.i did like to know whether any broking houses provides arbitrage facilities or not.please do reply,thank you.