Arbitrage trading with 50 lakhs capital

#1
I am planning to do arbitrage trading for 50 lakhs.

If you check this,
http://www.moneycontrol.com/stocks/marketstats/arbitrage/futures-spot-near-2.html

spot price of stock expiring in 15 days is 218 where as futures price is 221.
On expiry both will have same price, so if i do arbitrage trading I can get 1.31% profit. That is quite good considering the time.

So, is it possible to earn 2% monthly profit using arbitrage trading? Do I need to purchase some automated software to place orders for arbitrage trading?

Further i had checked BSE has cash future spread.
http://www.bseindia.com/markets/Derivatives/DeriReports/cfs_trading.aspx?expandable=3

How can i trade in this spread?What are the margin requirements for this spread?
 
#2
from what very little I know. Your entry and exit points must be very sharp and accurate.
are you sure you will be able to catch such price difference consistently and efficiently?
Would market players catch such an arbritrage and voiding you of such inconsistency in prices.
 

rahul321

Active Member
#3
I would personally suggest you to go for staright forward trading with this capital, JUST DO RIGHT MONEY MANAGEMENT,a little workout on few scripts and even commodity too, and you are good to go for constant monthly income even more than which you are targeting from arbitrage.
 

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