ARBITRAGE TRADE ANALYSIS OF STOCK TRADING IN BSE & NSE IIFL

Abstract

The security market is the place where suppliers and users of capital, meet to share each other vision and aspiration. The issued shares are traded hence it is called as secondary market. The individuals in market transfer the funds from non-profitable investment to profitable investment. This transfer of funds from low return share to high return shares forces the firms to improve their performance to increases the intrinsic value of shares.
The arbitrage is the deviation or difference between the market prices of a share. The arbitrage is gained when there is a difference in the price a share in two markets. The arbitrage provides some profits to the individuals in the market.
The arbitrage is the return for the invested amount and it is also for the skills used to get the deviation between the prices. The investors purchase the security from where the price is low and sell it in the market where the prices are high.
In these days, due to online trading the deviations in the market prices are occurring in rare. So it may be a difficult task to search for an opportunity of getting arbitrage.