Simple and basic traders rule to spot something moving hidden. Arbitrage. June 7, ISAT closed down -0,96% at Indonesia Stock Exchange. The same day this morning, ISAT which is traded as ADR in NYSE was closed higher +1,36% with volume signficantly above its 13 weeks average daily volume or triple. (See chart below).
June 7, ISAT at *IDX was closed for IDR5,15*0, while at NYSE, ISAT (IIT) was closed for US$30.16 divided by its converstion ratio of 50 equivalent to comparable US$0.6114 each ISAT stock or *Rp5,214.63 *at NYSE. See the widening gap last night. What is going on? You ask. People do not just buy for no reason with triple volume knowing that the comparable stock is sideways in another exchange. We tell in detail tomorrow, changing the planned 16:05 today. [image: Indosat ADR NYSE (June 7).png] *What Does Arbitrage Mean? Investopedia* The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time. '+'
<<Indosat ADR NYSE (June 7).png>>
