Piggy has been very reluctant to reveal some money making opportunities on the stock market. However, after some careful thought, he has decided not to end up like one of those “greedy fat pigs” but instead share and reveal a powerful secret, at least to his close friends. The truth is that despite being in the investment industry for some time, Piggy actually did not know anything about this secret that he is about to reveal. So pay great attention here! It all started one Thursday night after a day of hard work when Piggy decided to visit a nearby pub for a few drinks. As he entered the pub, he could see one of his former workmates called Humpty right at the back, sitting with some “acquaintances”. What startled Piggy was not necessarily the company his former workmate had but it was the bottles that were on the table. “Join us!” Humpty exclaimed, inviting Piggy to partake in the merry-making. As Piggy approached, his face beamed as he gazed at some of the labels on the table such as Johnny Walker Platinum (18 years) and Glenfiddich (15 years). Mind you, this was not even a Friday yet or anytime close to the usual “pay days”. “Let’s take some shots!” shouted Humpty as he handed Piggy a tot of whisky. “To the Old Mutual trade!” cried out Humpty as he took some gulps of Glenfiddich. That was enough for “clever Piggy” to research and figure out the rest of this old-kept secret.
Here is the point; Old Mutual Limited is a fungible counter listed on both Johannesburg Stock Exchange (JSE) and Zimbabwe Stock Exchange (ZSE), trading at different prices on the exchanges as illustrated hereunder;
A financial instrument such as a stock is considered fungible if it can be bought or sold on one market or exchange and then sold or bought on another market or exchange. In fact, the actual meaning of the word fungible is the ability to substitute one unit of a financial instrument for another unit of the same financial instrument, like what you can do with paper money, swapping your dollar for someone else’s.
In trading, fungibility implies the ability to buy or sell the same financial instrument in two or more different markets. For example, if one hundred shares of a stock can be bought on the Nasdaq in the USA and the same one hundred shares of the same stock can be sold on the London Stock Exchange in the UK, with the result being zero shares (100 bought and 100 sold), the stock is fungible. Generally, fungible financial instruments are often used in arbitrage trades. Arbitrage is when a trader takes advantage of a price difference in two different markets, buying at a lower price in one market, and selling at a higher price in the other market. The price differences of Old Mutual Limited on the JSE and ZSE present an opportunity to buy lower on JSE and sell higher on ZSE. The icing on the cake is that the demand for Old Mutual Limited shares on the ZSE has been sustained by foreign investors who have been using the share to exit the market. To cut the long story short, contact Piggy!
Join a piggybankadvisor.com WhatsApp based social trading group today by following the link; https://chat.whatsapp.com/GOqNASPbCFWEyNDb5AWG28
Download the piggybankadvisor.com Android App using the link; https://play.google.com/store/apps/details?id=com.piggybankadvisor.piggybankadvisor
Open a Free IronFX Demo Trading Account today in three simple steps by following the link; https://www.ironfx.com.bm/en/register?utm_source=13073443&utm_medium=ib_link&utm_campaign=IB