abhishreshthaa
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ARBITRAGE ON BSE AND NSE
MID 1990’S BSE & NSE WENT OVER TO SCREEN BASED TRADING
HUGE VOLUMES DUE TO ARBITRAGE BETWEEN EXCHANGES
PROCESS:
2 PEOPLE WORKING AS PAIRS
CONCENTRATION ON ONLY 1 OR 2 SCRIPS AT A TIME
HIGH RETURNS- 1 TO 1.5 % PER WEEK
THIS IS HOW ARBITRAGE WORKED
SETTLEMENT CYCLE AT NSE – WEDNESTDAY TO TUESDAY
SETTLEMENT CYCLE AT BSE– MONDAY TO FRIDAY
BUILDING UP OF POSITIONS IN THE ENTIRE WEEK
UNWINDING UP OR SQUARING OFF ON THE LAST DAY
RESIDUAL PORTION GOES FOR DELIVERY
MAD SCRAMBLE TO SQUARE OFF TRANSACTIONS ON FRIDAY OR TUESDAY
MID 1990’S BSE & NSE WENT OVER TO SCREEN BASED TRADING
HUGE VOLUMES DUE TO ARBITRAGE BETWEEN EXCHANGES
PROCESS:
2 PEOPLE WORKING AS PAIRS
CONCENTRATION ON ONLY 1 OR 2 SCRIPS AT A TIME
HIGH RETURNS- 1 TO 1.5 % PER WEEK
THIS IS HOW ARBITRAGE WORKED
SETTLEMENT CYCLE AT NSE – WEDNESTDAY TO TUESDAY
SETTLEMENT CYCLE AT BSE– MONDAY TO FRIDAY
BUILDING UP OF POSITIONS IN THE ENTIRE WEEK
UNWINDING UP OR SQUARING OFF ON THE LAST DAY
RESIDUAL PORTION GOES FOR DELIVERY
MAD SCRAMBLE TO SQUARE OFF TRANSACTIONS ON FRIDAY OR TUESDAY