Your comment on currency risk is interesting. As a single opportunity on any given day, neither of the exchanges would recognise your on-line holding in order to sell (if say you bought via the ASX and then attempted to sell on the NZX). I guess if you were transacting at high scale (value), a broker either end could manage on your behalf.
For those constantly looking for arbitrage opportunities on an ongoing basis, you would more likely hold a balance of shares for each of the two exchanges, This would provide you with the window to perfect the arbitrage, where your nett holding remains unchanged, but the balance of that held in the two exchanges would alter. In this instance, the currency risk, you have referred , extends beyond the day of the event and therefore could have a material impact.
Rokewa
PPH Price at posting:
$7.37 Sentiment: Buy Disclosure: Held
