Arbitrage trading with 50 lakhs capital

[yashu21985]

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?

 

[markidharhai]

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]

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.

 

[curiousv]

What are the negative consequences of cash to future arbitrage trading? I mean in theory it looks good but in practical it is not possible ?

 

[AncientLion]

if you are serious on making money then trade what is in demand and what is the earnings potential

for example, after the feb 2020 corona dip Nifty Midcap index bounced 100% doubling capital
Nifty IT gave spectacular returns because in lock down era demand for IT infrastructure was highest

now if I think future is in Electric Vehicles and power grid stocks will rise then step back and think just how much can per unit electricity cost increase without hurting anyone ; so its a useless idea, despite the future demand
.
evaluate ideas in this format to find hidden niches in the market.

 

[AncientLion]

i thought nifty 50 value 20 etf gave 70% return last year but if you step back and analyze returns since 2015 .....

i trade currencies and by the grace of god, its the easiest way to rake in moolah