You can simply buy at 98 INR on BSE and simultaneously sell at 100 INR on NSE.

You will get caught easily“But there is a catch here, as per SEBI regulations you are not allowed to buy and sell the same stock in different exchanges on the same day.”That was not true few years ago.

If you have stock X in your DP, you can sell the same in BSE and buy them in NSE as well to make a profit but then you are not doing intraday trading and so you may be paying the brokerage of delivery to your broker.These rules are specific to Indian stock market but may vary in other exchanges.The below embedded Google sheet will signal live arbitrage opportunities for NSE-BSE.

So one has the option of buying stock in one exchange and sell it in the othe…

And moreover, this is practically risk-free, as the loss on one order would be balanced by profit on the other order.From the example above, you must have assumed that arbitrage is an intraday trading strategy.

* BSE prices are delayed by atleast 15 minutes * NSE prices are delayed by atleast 5 minutes Towards the end of the day, the prices would tend to equate and you would make a profit on your trades.Suppose price at NSE is 101 and price at BSE is 100.5 later in the day.

Since NSE and BSE are the two major stock exchanges of India, we would consider the price difference between these two exchanges.

This strategy mensures that the value / quantity difference between the two scrips is as close as one another, thereby maintaining quantity/Value neutrality.Nest Gemini is a GUI tool which allows user to create 2-Leg strategies between the same/different exchange/product from a set of pre-defined parameters within a short span of time with ZERO programming knowledge.Using latest technology, traders race for the last millisecond in cashing on a arbitrage opportunity. The basic assumption behind this strategy is the fact that price tends to converge to an identical value at the end of trading day, even when there is a significant difference in price during market hours.Let’s take an example: suppose a particular stock “X” is trading at 100 INR at NSE and 98 INR at BSE during a particular time at market hours. I am no longer with the firm.

Read further to understand what is arbitrage and how to execute NSE BSE Arbitrage … But now SEBI is quite strict about it. buy one future scrip and sell another future scrip). In the Indian market, stocks trade in NSE (National Stock Exchange) as well as BSE (Bombay Stock Exchange). Calender spread etc. IOC orders ensure that users mandate is nearly maintained.This strategy allows the user to do a 2L or 3L trading in futures and/or options. Then how would you execute your arbitrage trades?There is a workaround; you can actually do arbitrage for stocks that you have in your demat account.

>> BNP Paribas Arbitrage Fund bought 1 crore shares of IDFC Limited at Rs 18.45 per share, NSE data showed. - YouTube Arbitrage is a trading strategy where one takes advantage of the difference in price of a particular security on different exchanges it is traded in. The money control website itself shows the arbitrage data.I was working with firm which does the arbitrage in nifty bank nifty options. >> Elara India Opportunities Fund sold 1.50 lakh shares of Aarey Drugs & Pharmaceuticals at Rs 17.26 per share, BSE data showed.

Then we can take advantage of Arbitrage and sell at a higher-priced exchange and buy at the lower-priced exchange to cash-in the profits. Since NSE and BSE are the two major stock exchanges of India, we would consider the price difference between these two exchanges.