What is Arbitrage Trading ?
“Arbitrage” trading is simply the trading of securities when the opportunity exists during the trading day to take advantage of differences in value between the markets the trades are made within. Arbitrage trading takes place all day long on most days that the markets are active.
Arbritrage is legally allowed. In fact arbitrage is responsible for a large part of the daily volumes on the NSE & BSE exchanges.
What mainly takes place in India is called Market Arbitrage
Market Arbitrage involves purchasing and selling the same security at the same time in different markets (BSE & NSE) to take advantage of a price difference between the two separate markets. A market arbitrageur would short sell the higher priced stock and buy the lower priced one. The profit is the spread between the two assets.
Here is a simple example:
Suppose you own 600 shares of RPL. One trading day you notice that RPL is trading at 150 on the BSE and 145 on the NSE. You sell your 600 shares on the BSE at 150 and simultaneously buy back the 600 shares on the NSE at 145.
You profit in this case is 600*5.00 = 3000.00 less brokerages if any.
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Sam Says:
August 9th, 2012
Posted at: 2:46 pm
Rates are definitely different in between different stock exchanges for the same stock or commodity as well. It may be inter country or intra country. For more details contact me on [email protected]
mohit bisht Says:
September 25th, 2012
Posted at: 5:16 pm
i am looking forward to the arbritrage trading but still i have some question if you guys can sort it out
do we need to open two trading account ?
and evry details if youy can provide me that will be very helpul for me..pls reply asap
[email protected] Says:
December 8th, 2012
Posted at: 6:45 am
pl give the procedure of arbitrage
News Analysis Says:
January 17th, 2013
Posted at: 3:32 pm
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Akshay Says:
February 23rd, 2013
Posted at: 8:04 pm
I wish to enroll my self for the Arbitrage corse
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Omkar Phadnis Says:
April 9th, 2013
Posted at: 10:55 am
Hi,i know Arbitrage but plz.give me extra info.
kindly contact me on:940-435-8858
vijay Says:
June 27th, 2013
Posted at: 12:26 am
i want to know more about arbitrage trading, can you provide me with some details or some lead..My number is 08086340253
Sop Says:
January 16th, 2014
Posted at: 11:21 am
i want to learn about arbitrage trading please advise me
Nikita Sharma Says:
May 7th, 2014
Posted at: 1:50 pm
want to learn arbitrage trading pls help, call 8411954870
oafm Says:
July 7th, 2014
Posted at: 11:27 am
LEARN ALGO ARBITRAGE TRADING IN OPTION AT OAFM (OCEANIC ACADEMY OF FINANCIAL MARKET)
vijayan Says:
July 15th, 2014
Posted at: 2:58 pm
hi,
I need help for ARBITRAGE trading. both option and stocks.
how trade arbitrage. where i buy arbitrage software. we need full details for arbitrage.
please replay me.
Call: 9940571606
Email: [email protected]
Dhananjay Mohankar Says:
August 4th, 2014
Posted at: 11:44 pm
Hii All Friends, I am a Arbitrage Trader, u can call me for information about Arbitrage Trading.
07897669773
universal group Says:
October 6th, 2015
Posted at: 9:48 pm
Hi manoj, Hi manoj, http://profit.ndtv.com/market/arbitrage-opportunity
see this link.
Stock Cash Tips Says:
November 7th, 2015
Posted at: 11:35 am
i love t read your post wait for new post
sonal Says:
August 29th, 2018
Posted at: 12:45 pm
i know that what is arbitrage but in nse & bse don't know that when we are done a position with 5 r, gap example:- mhril purchase in nse in 500 q. Buy= 256 and in Bse 500 q. Sell 271. than in the last what do in next position