If been doing some numbers and I don't see the arbitrage. If the price goes up you lose everything (you got margin called).
Am I missing something.
When you are not sure about how the F&O works and how to arbitrate within them, it is highly recommended to stay away. Right now Indian bitcoin markets are ahead of $200 than rest of markets (check
here). If you can make use of it, you can earn decently with this arbitrate trading opportunity.