- Wealth PMS
We continue on the Arbitrage series with a post on inter-exchange arb. We have two popular exchanges in the country (NSE and BSE) and given that you can access both, there is an arbitrage opportunity that emerges between the two.
You could technically buy a stock on the NSE and simultaneously, sell it on the BSE. The difference of prices between the two needs to be enough to handle transaction costs.
Why does this arb even exist? Most institutional purchase are in large numbers and . . .