How does arbitrage and hedging differ ?

Arbitrage is the difference in the price of the traded commodity on various stock exchanges. 


Hedging is negotiation of the price of the traded commodity to eliminate the transaction risk. Hedged price of the commodity remains the same on various stock exchanges.


What is your take on balance transfers ?

As far as savings account balance is concerned, I believe that it may be transferred to that account where the respective bank is offering a higher interest rate. 

As far as fixed deposits are concerned I believe such bank account balances should not be transferred because fixed deposit breaking charges create a loss on such balance transfer.