Buy from nse can sell on bse on t+2 day?

General
1

I have bought xyz stock on.Monday using CNC product from NSE and want to sell on wednsday. Can I sell on BSE on wedensday?

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2

If you buy on Monday, you would receive delivery only wednesday afternoon. Once the delivery has happened you can sell it on any exchange you want (Thursday onwards). Presently ,until Wednesday delivery comes through ,if you are selling it will have to be on the same exchange.

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3

yes, it is possible

4

@ Nithin
Does this mean, arbitrage opportunities when see a price difference between NSE and BSE cannot be captured instantly?
I mean buy from NSE and sell in BSE on Intraday?
What happens in BTST situation, is it not possible to buy today in NSE and sell the shares on BSE tomorrow?

5

I dont think BTST is possible in Zerodha Platform.

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@AastroGuru. Arbitage accross exchances can be done intraday only. if you buy and sell in another exchance, you may need to square of the trades later.

1 Like
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@ Mystique, BTST is possible please read this.http://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
@ Trade100
What do you mean square off? You are saying it can be done intraday, are you saying if i use MIS product code, I can buy in NSE and sell in BSE immediately,

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if bought in NSE, square of also to be done in NSE. same with BSE. what I am saying is when there is difference of price in both exchange, initially one buys from exchange where it is cheaper and sell it in exchange where it is higher. so he bags the difference. now later he will have to do the reverse in both exchanges to square off the trade. This squaring off is done when the price are near same in both exchanges so there is no loss in this squaring off, except the brokerage and other charges.

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@trade100
Seems very twisted. I think if that is the case, retails traders doing such thing would be less common.
Edit:
Got the point now.
http://tradingqna.com/2163
So if I see price difference between NSE and BSE, I should do this.
Example
[email protected] and [email protected]

Situation 1: Uptrend curve
1st set of trading:
Position 1: Buy intra-day 1000 shares at 612.80 in BSE.
Position 2: Sell intra-day 1000 shares at 613.70 in NSE
2nd set of trading:
SquareOff1: Sell intraday 1000 shares at 620.00 in BSE
SquareOff2: Buy intraday 1000 shares at 620.00 in NSE

Situation2: Downtrend curve
1st set of trading:
Position 1: Buy intra-day 1000 shares at 612.80 in BSE.
Position 2: Sell intra-day 1000 shares at 613.70 in NSE
2nd set of trading:
SquareOff1: Sell intra-day 1000 shares at 600.00 in BSE
SquareOff2: Buy intra-day 1000 shares at 600.00 in NSE

In both situations,
Profit = (613.70 - 612.80) x No. of shares - Brok and other charges
This amount is getting locked as profits.
I also understand if in 2nd set of trading, If price is varying between NSE and BSE also, no issues, as long as it is less than the difference observed in the 1st set of trading.

1 Like
10

There is one case you can be at loss or with no profit.
if you buy NSE at 108 and sell BSE at 112
later the price in BSE is 4 or more units less than NSE through out the day
like price in BSE is 120 and in NSE it is 125. Then if this difference is there through out the day, then you will be forced to square off in loss. But I think this won’t happen some others will do arbitage and make the price equal.
Well, these are imagined situations. In realilty the price difference is very little in both exchanges as there are people with automated programs to do arbitage. so trying to do this manually may result in loss.

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11

Another thing is when you buy or sell large quantity of shares for arbitage, the price difference will go on decreasing. So before doing a buy or sell operation for arbitage he should measure the depth of market to see how much average price he will get when this large order is excecuted. if this is not considered, there is chance of loss in first transaction itself.
normal users can see only 5 entries of market depth, only those who subscribed to higher levels of market depth can see 20 buy/sell orders.

1 Like
12

@trade100
Agreed to both the points.
Doing arbitrage on highly liquid stocks would be difficult to be done manually. But what about illiquid or stock of low volatility. They stay in the differnce range for quite sometime and a limit order with waiting in queue can be used.
I will try something like this next week with lesser volumes say 10 or something and let you know through Private Message.

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why in private? :slight_smile:

did you try ? what was the outcome?

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Yeah please tell did you try that… what’s the outcome ?