Retail traders can now tap a simple tool on Zerodha that lets them buy a stock on one Indian exchange and sell it on the other in seconds.
How the feature works
From the positions page, select the exchange where you want to exit the trade. If you bought the share on the NSE, you can choose the BSE as the exit exchange (or the reverse). The system will automatically close the position on the chosen exchange.
Why it matters
- Instant margin release: As soon as the sell order is executed, the margin tied to the trade is freed.
- No extra capital needed: You don’t have to lock additional funds to hold the arbitrage trade.
- Works for intraday and delivery: The same steps apply whether you plan to close the trade the same day or hold the share longer.
When arbitrage appears
Price differences between NSE and BSE happen when supply‑demand balances, liquidity, or order flow differ for a stock. These gaps are usually short‑lived, so speed and discipline are essential.
Things to keep in mind
- Transaction costs on both exchanges can eat into the profit.
- The price gap may disappear quickly, so monitor the market closely.
- The opportunity is best for stocks with high liquidity on both platforms.
Final thoughts
While large institutions have used inter‑exchange arbitrage for years, Zerodha’s tool puts the same possibility into the hands of everyday investors—provided they act fast and stay aware of costs.
Remember, this is just an overview, not a recommendation. Do your own research before trading.