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How does Arbitrageurs make profits?

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Anonymous

16y ago
Updated: 8/17/2019

The arbitrageur sells in one exchange and buys on another exchange due to price differences. E.g., He buys, say, Satyam Computer on BSE @157 and sells the same Scrip @,say, 159 on NSE. Now when the price difference narrows he square off the position ,say @ Rs.155.5. He make a profit of Rs.3.50 on NSE and a loss of Rs. 1.50 on BSE.Summing up, his total Profit is Rs.2 per share.

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Wiki User

16y ago

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