Chapter 1

Introduction

1
1.1 Introduction of the study
A central idea in modern finance is the law of one price. This states that in a
competitive market, if two assets are equivalent from the point of view of risk
and return, they should sell at the same price.

If the price of the same asset is different in two markets, there will be
operators who will buy in the market where the asset sells cheap and sell in the
market where it is costly. This activity termed as arbitrage, involves the
simultaneous purchase and sale of the same or essentially similar security in
two different markets for advantageously different prices.

Theoretical arbitrage requires no capital, entails no risk and appears to be an

easy way of earning profits. However, real–world arbitrage calls for large
outlay of capital, entails some risk and is a lot more complex than the
definition suggests. A major weak link in India’s financial sector today is
inadequate knowledge about arbitrage..

1.2 Object of the study

Part of Masters of Business Administration curriculum to have practical
exposure to the actual competitive environment.

1.3 Objective of the study

• To know the concept of arbitrage.

• To observe arbitrage trading practically.

• To know how to earn risk free profit.

1.4 Rational of the study

Arbitrage trading related to NSE & BSE stock exchange.

2
1.5 Limitation
• While doing the study proper information was not given as they have to
concentrate on the market trading.

• Theoretically the concept is very easy to understand but practically its very
tuff.

• The time span for studying the concept is very less.

1.6 Definition
An arbitrage opportunity is the opportunity to buy an asset at a lower price
then immediately selling it on a different market for a higher price.

1.7 Meaning
In an economics and finance, arbitrage is the practice of taking advantage of a
price differential between two or more markets: combinations of matching
deal are struck that capitalize upon the imbalance, the profit being the
difference between the market price. When used by academics, an arbitrage is
transaction that involves no negative cash flow at any probabilistic or temporal
state and a positive cash flow in at least one state; in simple terms, a risk-free
profit. A person who engages in arbitrage is called an arbitrageur. The term is
mainly applied trading in financial instruments.

If the market price do not allow for profitable arbitrage, the prices are said to
constitute an arbitrage equilibrium or arbitrage-free market.

1.8 Arbitrage is possible when one of three conditions is met

The same asset does not trade at the same price on all markets ("the law of one
price").

Two assets with identical cash flows do not trade at the same price.

An asset with a known price in the future does not today trade at its future
price discounted at the risk-free interest rate (or, the asset does not have
negligible costs of storage; as such, for example, this condition holds for grain
but not for securities).

3
 Arbitrage is not simply the act of buying a product in one market and selling it
in another market for a higher price at some later time. The transaction must
occur simultaneously to avoid exposure to market risk, or the price may
change on one market before both the transaction are over. In practical terms,
this is generally only possible with securities and financial product which can
be traded electronically.

1.9 Requirement
True arbitrage requires that the financial instrument is trading at two different
prices, and that buying and selling trades can be completed at the same time.
The simultaneous trade requirement is designed to eliminate any risk in
holding a trade. Trades based upon the same principles as arbitrage might be
buying a commodity in one location, transporting the commodity to another
region, and selling the commodity in a new region. This type of trade would
not be true arbitrage, because the buying and selling trades would not have
occurred at the same time.

Example:

Stock and stock futures- buying a stock and selling a single stock future
contract.

Stock on different exchanges- buying a stock on one exchange and selling the
stock on another exchange.

Mergers- buying the stock of a company being acquired, and selling the stock
of the acquiring company.

1.10 Operation pattern of Arbitrage

In situation where it is possible to exploit mispricings risk less by generating
perfectly hedged positions and holding on to them till the final payoff, the
following operational aspects need be noted before implementing arbitrage
strategies:

For the arbitrage to be risk-free process, the arbitrager must trade simultaneously in
two markets.

• All trading involves transaction costs.

• But not all mispricings are profitable arbitrage opportunities.\

4
1.11 Existing arbitrage opportunities
The launch of the derivative markets in India has given rise to a whole new
world of arbitrage. Multiple products with the same underlying asset are now
available for trading. Mispricings across the spot, futures and options markets
can led to profitable arbitrage opportunities.

1.12 How is arbitrage done

In situations where it is possible to exploit mispricings risk less by generating
perfectly hedged positions and holding on to them till the final payoff, the
following operational aspects need be noted before entering into an arbitrage.

For the arbitrage to be a risk–free process, the arbitrageur must trade

simultaneously across two markets. In efficient markets, arbitrage
opportunities last for very short periods. As arbitrageurs spot these
opportunities and act upon them, the arbitrage gets wiped out. The fastest
instances of arbitrage opportunities being wiped out, are those seen in the
stock exchange market. This market trades shares in large volumes, so what
seems like a small mispricings can often translate into huge profits.

Example:

Reliance’s June stock future was quoting at Rs 1954.70, and this was at a
significant premium to its cash price of Rs 1964.40 to the extent of Rs 9.70.
This amounted to a huge cost of carrying. The arbitrager who was sure that
apart from the pure demand and supply factors in the cash and future market,
there is no reason, for the stock futures to exhibit such a wide difference. He
chose the risk-free arbitrage to cash in on the gains. Thus, he sold Reliance
futures in the future segment and bought Reliance stock. By the time the
futures approached expiry, the difference vanished, when he sold the shares
and squared off the position. By this act, he earned a huge risk-free return even
after taking into account his costs of transaction.

Trading involves transactions costs. These transactions costs and other market
imperfections create a no– arbitrage band around the fair value of an asset.
Hence the arbitrage opportunity must be sizeable enough to generate a profit
over and above the costs involved. Not all mispricings are profitable arbitrage
opportunities.

5
1.13 Transaction rates in arbitrage

Cash to cash
+1000 buyed 0.35
-1000 sold

Cash to future
+1000 buyed 0.30
-1000 sold

Future to future
+1000 buyed 0.23
-1000 sold

And if the turnover exceed Rs 1, 00, 00,000(1crore) the interest

charged on it is Rs 1700/-

The transaction costs involved are brokerage, service tax on

brokerage, securities transaction tax (STT), Demat charges,
derivatives clearing charges.

6
1.14 How the transaction does from NSE to BSE or vice-versa takes
place?
Firstly it is not possible as such for a layman or a beginner.
There are possibilities to do trades with some condition.

a) DELIVERY SELLING.

If you have your shares in your DEMAT account. You can sell it in NSE as well
as BSE, wherever it is beneficial to you irrespective of the fact that whether you
have bought those shares from NSE or BSE.

Condition :- You MUST have those shares in your DEMAT a/c

Your Broker Must be a member of Both Exchanges i.e. NSE and BSE

b) ARBITRAGE with shares

In this case, When you have certain amount of shares in your DP. Then firstly
you sell those shares in One Exchange (suppose) NSE and buy it Back on the
other one i .e BSE.

Condition: -

You MUST have those shares in your DEMAT a/c

Your Broker Must be a member of Both Exchanges i.e. NSE and BSE

The price difference is good enough to account for the charges that our levied on
Buying and selling in Delivery mode.

c) ARBITRAGE without shares.

This is interesting one. It requires a HAWK eye as a trader. You need to SPOT a
shares with good enough Volume in both Exchanges.

7
Lets understand this with an Example

SHARE of ABC Ltd trading at 44.25 in NSE

SHARE of ABC Ltd trading at 43.85 in BSE

You BUY 1000 shares of ABC from BSE @ 43.85 per share
You SELL 1000 shares of ABC from NSE @ 44.25 per share

NET POSITION is N I L

now wait for the fluctuation to turn in you favour. Now Suppose after two hours
of trading

SHARE of ABC Ltd trading at 46.15 in NSE

SHARE of ABC Ltd trading at 46.20 in BSE

You closes your position i. e

You SELL1000 shares of ABC from BSE @ 46.20 per share

You BUY 1000 shares of ABC from NSE @ 46.15 per share

Profit / Losses made by you

NSE :- Loss of 1.90 per share (46.15 - 44.25)

BSE :- Profit of 2.35 per share (46.20 - 43.85)

Therefore NET Profit made by you is 0.45 (2.35 - 1.90) per share

Gross Profit = 1000 x 0.45 = 450

Normally These Trades are done with GREATER Volume i.e. 20,000 onwards.
Well the profits may be small in terms of per share but risk are relatively low
than mere INTRA DAY Trade without logic. When it’s done with good
volumes, gives HANDSOME Profits. As all trades are INTRA DAY therefore
the brokerage Charges are nominal.

8
1.15 Difference between intraday and arbitrage

It is done in single exchange {BSE or It is done in both exchanges at a same

NSE} at a time. time.

There is no limit for loss. risk is high Loss is of fixed amount. So it is less
risky

Up & down in market has significant It is not affected by sudden rise or fall
effect in market

Intraday can be done in many scripts Arbitrage is done only in script which
are listed on both the exchange

Tips are given for intraday No tips are required for arbitrage

Common public can do intraday Common public can’t do arbitrage as

they don’t have license for it.

Code is not required for doing intraday Without code arbitrage is not done

1.16 Why common public can’t do arbitrage?

For doing arbitrage license is required which is provided by SEBI. There is
special exam for arbitrage after passing it u gets the license. Then u get code
for login to current market and then only u can do arbitrage. Not all brokers
have the authority/facility to be arbitrageurs.

Common public can’t do inter exchange settlement of funds…

For common public arranging large fund is very difficult...

1.17 Risks in arbitrage in India:

The basic principles of an arbitrage strategy are straightforward- if an assest trades at
two different prices across two markets, buy where it trade cheap and sell where it

9
 trades expensive.. in reality, almost all arbitrage requires capital and carries some
risk.

What are the risks?

The first risk is the trade execution risk. While all care is taken while executing
trades, there is a difference in the price at which trades finally gets executed and the
price that is targeted at the time of initiation of the trade. These differences arise on
account of various reasons such as overload on trading system of the exchange,
sudden price volatility, connectivity speed etc.

Mark to market risk typically arises in rising markets because additional margin is
required to be given to the derivatives clearning member. This may turn out to be
more than money kept aside. However in such a situation one can reverse the original
position and avoid margin payment.

Risk on clearing corporation and members is the risk of the exchange or its
clearing corporation defaulting. However this is similar to the risk of bank
going bankrupt and mainly theoretical.

Connectivity to the exchange, natural disasters etc. pose a risk since the trader
need to be reversed on or before expiry of the contract. In case we are unable
to reverse the position on or before expiry of the future contract on account of
loss of connectivity or natural calamity or fire, it market result in losses.

1.18 Required knowledge

Arbitrage requires an understanding of the price mechanisms across markets.
Most market players in India are not yet comfortable about trading on the
derivatives market. Even those acquainted with derivatives market do not
understand the intricacies of arbitrage. This lack of knowledge results in
sustained mispricings on the market.

1.19 Trading restrictions:

10
 When the markets are very volatile, the stock exchange imposes a
circuit breaker on the stocks. On NSE’s market, whenever the index moves by 10, 15
or 20 percent in one day, NSE’s rule number 26528-6-2001 comes into play which
halts trading. These trading halts are coordinated by SEBI.

At this point all trading on the exchange is stopped. The exchange allows the markets
to process all the relevant information and come to an equilibrium. A halt in trading
can result in a loss for an index arbitrageur who, as a part of his arbitrage strategy, is
in the process of buying or selling the index stocks.

11
 Chapter 2
Industrial Profile
12
2.1 INDUSTRY PROFILE

A) Early Years: -

The Indian broking industry is one of the oldest trading industries that has
been around even before the establishment of the BSE in 1875. Despite
passing through a number of changes in the post liberalization period, the
industry has found its way towards sustainable growth. With the purpose of
gaining a deeper understanding about the role of the Indian stock broking
industry in the country’s economy, we present in this section some of the
industry insights gleaned from analysis of data received through primary
research.

For the broking industry, we started with an initial database of over 1,800
broking firms that were contacted, from which 464 responses were received.
The list was further short listed based on the number of terminals and the top
210 were selected for profiling. 394 responses, that provided more than 85%
of the information sought have been included for this analysis presented here
as insights. All the data for the study was collected through responses received
directly from the broking firms. The insights have been arrived at through an
analysis on various parameters, pertinent to the equity broking industry, such
as region, terminal, market, branches, sub brokers, products and growth areas.

B) Geographical Concentrations: -

Almost 52% of the terminals in the sample are based in the Western region of
India, followed by 25% in the North, 13% in the South and 10% in the East.
Mumbai has got the maximum representation from the West, Chennai from
the South, New Delhi from the North and Kolkata from the East.

Mumbai also has got the maximum representation in having the highest
number of terminals. 40% terminals are located in Mumbai while 12% are
from Delhi, 8% from Ahmedabad, 7% from Kolkata, 4% from Chennai and
29% are from other cities in India.

13
 Fig.1

C) Products Offered: -

The survey also revealed that in the past couple of years, apart from trading, the firms
have started offering various investment related value added services. The sustained
growth of the economy in the past couple of years has resulted in broking firms
offering many diversified services related to IPOs, mutual funds, company research
etc. However, the core trading activity is still the predominant form of business,
forming 90% of the firms in the sample. 67% firms are engaged in offering IPO
related services. The broking industry seems to have capitalized on the growth of the
mutual fund industry, which was pegged at 40% in 2006. More than 50% of the
sample broking houses deal in mutual fund investment services. The average growth
in assets under management in the last two years is almost 48%. Company research is
another lucrative area where the broking firms offer their services; more than 33% of
the firms are engaged in providing company research services. Additionally, a host of
other value added services such as fundamental and technical analysis, investment
banking, arbitrage etc are offered by the firms at different levels.

14
D) Future Plans

68% of the firms from the sample have envisaged strategies for future growth. With
the middle class Indian investor as well as foreign investor willing to invest in the
stock market, majority of the firms preferred expansion of institutional and the
Foreign Institutional Investor clients in their areas of growth. Around 84% have
shown interest in expanding their institutional client base. Nearly 51% of such firms
are located in the West, 25% in North, 15% are from South and 9% from East. Since
the past couple of years, India, along with Korea and Taiwan, has been one of the
preferred destinations for the FIIs. With corporate restructuring, rising market
capitalization and sectoral friendly policies helping the FIIs, more than two thirds of
the firms are interested in increasing their FII client base. Amongst these firms, west
again has maximum representation of 53%, followed by North with 22%. South has
15% firms and East makes up for 9%.

Fig 2

15
 Chapter 3
Company Profile

16
17
 Chapter 4
Research Methodology
4.1 RESEARCH METHODOLOGY
During my project, I collected data through various sources primary & secondary.

Primary data:-

18
 Primary data is the data which is not available. This data is especially collected
which is known is first hand data

Primary sources:-

• Questionnaires for public

• Discussion with experts

• Live trading in the market

Secondary data:-
Secondary data is the data already collected by someone else. This data is not
especially collected to solve present or specific problem. The information is relevant
and can be used for our purpose

There are two major sources of secondary data collection

They are:

Internet

Reference book (N. Sridhar)

19
 Chapter 5
Data Analysis, Findings
&
Interpretation

20
 SCRIP BSE (Rs) NSE (Rs) Diff. (Rs)

ABB 695.4 692.1 3.30

ACC LIMITED 764.0 763.1 0.90

AMBUJA CEMENTS 96.2 95.8 0.45

AXIS BANK 739.1 738.3 0.85

BHARTI AIRTEL 782.3 777.7 4.65

BHEL 1,984.7 1,986.0 -1.30

BPCL 450.9 452.3 -1.40

CAIRN INDIA 212.5 212.7 -0.25

CIPLA 262.1 262.5 -0.40

DLF LIMITED 278.6 278.5 0.10

GAIL 311.2 311.4 -0.20

GRASIM 2,401.9 2,402.8 -0.85

HCL TECH. 177.4 176.7 0.65

HDFC 2,199.2 2,198.5 0.65

HDFC BANK 1,386.1 1,378.9 7.25

HERO HONDA 1,447.9 1,452.3 -4.40

HIND. UNILEVER 266.5 267.4 -0.85

HINDALCO 73.1 72.8 0.30

ICICI BANK 629.0 628.9 0.10

IDEA CELLULAR 67.4 67.6 -0.25

INFOSYS 1,726.5 1,721.2 5.35

21
ITC 210.5 210.6 -0.10

JINDAL STEEL 2,539.9 2,540.0 -0.10

 Source of data:- This data is collect from secondary
source(www.moneycontrol.com))

Chart 1

22
Interpretation of data:-

As shown in the chart1 the various companies script trading in NSE and BSE have
some difference in their rates at both the exchanges, but as correctly mentioned above
that every mispricings is not an opportunity because here the carry cost or borrowing
cost of the company matters a lot or may vary.

As shown in the script of RELIANCE there is the difference of Rs 3.25 though there
is the difference the company having high carrying cost or borrowing cost cannot grab
the opportunity.

Fig.3

Here as we can see the difference in the rate the arbitrage company cannot grab the
opportunity at the period(stages) of 1,2,3 because of borrowing cost pr carrying cost
but the company can take or grab the maximum opportunity on 5,6 stage of the chart
shown above….

This also shows the volume in this share is quite large so the rates keep on
fluctuating(volatile) and as a result the opportunity can be grab easily.

23
 Fig.3.1

While doing the summer project one day the rate of the script RELIANCE was
observed that there was not much of difference between two markets or we can say
the volatility was not there. So there was not much of opportunity to grab in for the
arbitrageur

24
Chapter 6
Findings
&
Suggestions

25
Finding

1) Cost cutting
For doing arbitrage firm requires large capital. Firms need finance for short term for
doing arbitrage; therefore they take loan from investor. Therefore, caring cost per unit
increases. Investor give their money for 1month or two months on interest or
sometimes they invest money on profit/loss bases i.e. 50% sharing in profit and lost.

So it’s necessary to reduce the cost of caring for firm.

While doing summer project I came across that company had borrowed funds from
investor on 1% interest rate per month. Therefore, there caring cost had increased by
1% more.

E.g. reliance industries current market price is 1800{bse} caring cost of company
becomes {18rs (int) +2rs (charges)} =20rs we can clearly see that we want
difference of 20rs in BSE & NSE to come at break event point...

In daily trade its observe that this script shows difference of 6 to 7rs therefore, we
can say firm can make profit by doing 4 to 5 times such trade with difference of 6rs
at least in a month..

2) Ambience
Ambience plays an important role because the atmosphere of the surrounding should
not be dull because they have to be alert for garbing the opportunity.

In company chairs where very close many times it disturbed the person sitting on
screen.

The area was near about 700sqt in which 20 people have to work with their different
screens and to and fro of any person disturbed the operator.

26
3) Idea of Arbitrage funds
As there are various intermediaries in market who are directly or indirectly related to
the capital market for mobilizing their resources and getting maximum return.

For making concept real one company came up with mutual fund wherein they collect
the money from the public and make optimum use of capital in market with a view of
making profit. But as rightly said by DHIRUBHAI AMBANI

‘PROFIT DON’T REQUIRE ANY INVITATION’ but the mutual fund company
only understands the language of profit. In other words they have their margin in
profit but they don’t share in loss incurred by customer

4) Training of Technical analysis

As per the observation done during the project, I observed that the employees wait for
the arbitrage opportunity to take place and then work on that according, till the time
the employee cannot grab the optimum opportunity available

5) Technology
One of the problems faced during the project by the company was like;

E.g.:

As every table has couple of screen on the table but one of their college was
facing a technological problem. The rates of the script were getting changed but the
time taken by this p.c was mainly delayed by near about 5sec. Means the screen was
updating the rates after 5 sec (late). So the time span of 5 sec is a very long time as the
deals are done in secs. So the loss can be occurred.

6) Payment
The salary plays an important role for an every individual working. But in an
arbitrage though the employees are working for the top management but they don’t
have any restriction for doing any kind of transaction. The job of arbitrage is very
much beneficial for the employees if they get the right amount of payment because
arbitrage requires lot of experience and alertness for trading.

The company was currently sharing their payment in the ratio of 30:70, though
the company was earning profits so the employees were a bit dissatisfied.

27
Conclusion

Arbitrage is a fascinating process. Theoretically, an arbitrage opportunity is

like money lying on the road waiting to be picked. The trick of the trade is in
being able to spot the opportunity quickly.

Besides an understanding of the markets, the processes and the risks involved,
exploiting arbitrage also requires capital and infrastructure. In some markets it
is possible to detect and capture arbitrage profits manually. Doing an arbitrage
trade today is fairly simple. However, as derivatives get more complicated, the
procedures employed for doing arbitrage will steadily get more complex. This
will require new skills to be developed and new processes to be formulated.
With the introduction of multiple new products, faster trading mechanisms and
more efficient markets, it may prove to be impossible for the human eye to
detect or act upon arbitrage. We would then have to rely on computers. As
computers get into the game, arbitrage opportunities would be quickly wiped
out’s

There would however always be smart operators who would find ways to use
new products and new markets in order to continue the arbitrage game.

Capturing an arbitrage opportunity involves following prices in two markets

and entering into trades simultaneously on both these markets. Successful
arbitrage depends on obtaining the correct prices across the two market and
trading accordingly. Due to the lack of adequate IT infrastructure, prices 20
from various agencies are often received with a time lag.

The delay can sometimes be as long as 30 seconds. This implies that what
may appear like a potential arbitrage opportunity at time T may actually have
existed at time (T-t) and may or may not exist anymore. Having proper
decision support systems in place will help to correctly identify and exploit
arbitrage across markets.

28
Recommendation

Suggestion 1:
Company should try to reduce rate of interest or should try to convince
investor to be 50% partner in profit and loss. This will increase the
opportunity of company to earn more profit.

Suggestion 2:
For doing comfortable arbitrage there should be near about 1200sqt for the
accommodation of at least 20 members.

Company should provide comfortable sitting.

Refreshment activities like playing of songs

Suggestion 3:
On other side concept of arbitrage is of earning risk free returns. So people
should be made aware of arbitrage so that they can invest their money in
arbitrage where risk is low and chances of profit are 90%. Company should
come up with the awareness about arbitrage.

People are mostly interested in earning the returns. As rightly said people have
lots of fund in their pocket but how to take them out is a big challenge for
everyone, here arbitrage can be successful.

The crux of arbitrage is ::markets are no doubt the riskiest of all other asset
class like gold, real asset…etc,, but to reduce the risk in the market to the
maximum and gain a decent return out of it, is what arbitrage is all about. Its
just catching and enchasing the rate differences in two exchanges making it a
lot more less riskier investment decision to earn money compared to any other
asset class.

Suggestion 4:
29
 Training should be conducted by the firm after the market time trading
is over because on the job training is not possible.

As they are well experienced, have good speed of typing, good eye sight etc an
technical training may add a value to their trading and also help them to
motivate as they can work more effectively and as a result company can take
maximum opportunity of the profit.

Suggestion 5:
To avoid this company should:

Set a particular team should by the company for looking upon the technical
aspect.

Regular check up of p.c should be taken into consideration after the time of
market trading is over

Some inventories of spare parts related to the computers should be maintained

(especially keyboards)

Use of only and only BOLTS and NEAT system should be taken to prevent
delay in rates refreshing

Suggestion 6:
Company should give or share their profit in the ratio of 50:50 to all the
experienced employees working. (The payment or sharing ratio was same for
everyone)

Company should also look upon the job satisfaction rather then their profits
because experience employees are rare to find.

30
 Chapter 7
Bibliography
Magazines:

⇒ Capital Market

31
⇒ Dalal Street
⇒ Bank Quest

Websites:

⇒ www.intra.rathi.com
⇒ www.icicibank.com
⇒ www.rbi.org.in
⇒ www.moneycontrol.com
⇒ www.equitymaster.com
⇒ www.nseindia.com

32
 Chapter 8
Ann
exure

33
ANNEXURE

A survey of 100 clients is conducted in gandhi securities ltd. And data

collected from the survey is as follow:-

QUESTIONNAIRE
Name of the person:-
__________________________________________________________

Address:-_________________________________________________________________

Phone No:-______________________________ E-Mail:-__________________

1) Do you know the concept of arbitrage?

yes

no

2) Do you know any other investment except cash & f&O?

YES

NO

3) Do you think arbitrage investment is beneficial for you?

Yes

No

May be

4) Are you interested in risk free returns?

34
Yes

No

5)what Amount of investment would you like to invest in arbitrage ?

10000

10000 to 100000

Above 100000

Source of data:-

This data is collected from primary source i.e. with the help of questionnaire.

Interpretation of data:-

01)

Here the chart represents that nearly 95% of the people doesn’t know the
concept of arbitrage. Only 5% of the people are aware of the concept of
arbitrage.

yes
no

Fig 4

35
02)

This chart indicates that 95% people don’t know any other investment
rather than cash market or future market and only 5% are aware of the
other investment.

yes
no

Fig 5

03) This chart indicates that the investment in arbitrage may be

beneficial for them as the concept is not clear in their minds. The percent
of people who thinks it will not be beneficial is near about 20%, the
people who thinks its beneficial is near about 10%, and the people who
think it may be beneficial is near about 70%

yes
no
maybe

Fig6

04)

this pie chart enable us that the people who are interested in risk free profit are near about
95% and the remaining 5% are not interested as they like to deal in speculative market and
earn there profits though they are risky but they don’t have patience to wait.

36
yes
no

Fig 7

37