First one needs to understand that what is Arbitrage which can be stated as the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.
Arbitrage is considered a risk-free profit for the investor or trader. A trader tries to exploit arbitrage opportunities like buying a stock on a foreign exchange where the price hasn't yet adjusted for the fluctuating exchange rate.
Here we will show you a screenshot of Yesbank stock in the Cash or spot segment and will also show the screenshot in the future segment which shows that the price differential exists between underlying and in the derivative segment which can be exploited to have cool profit. We have tried to take both screenshots within almost same time frame within a matter of one second to get the correct perspective. The screenshots are of today i.e. 11 Dec 2019 taken at approx 11:26AM
Please remember that the stock like Yes bank at present juncture falls in the category of high-risk high return stock. We had already initiated a sell call on Yes bank way back in Nov 2018 when the stock broke 180 level as a falling stock is like a falling knife and thus it falls in the category of high-risk high return stock.
So, you can as a smart trader can cooly book profit by using the price differential available in the financial market. Keep abreast of the latest market techniques and opportunities to make money in the market and be a part of smart traders who make money by using our best intraday tips which perform irrespective of the condition in the market as stock-specific action takes place every day.