Many time when i see bulk deals in screener on daily basis i see that same company buy at particular price like 100 rupees and also sells the same stock at same price. @ 100 rupees only. What does it mean and why these type of bulk deals are done when buys at same price and also sell at same price same company… pls i m confused to understand why such deals done
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In many instances they will be representing different end clients on a synthetic product (ie: equity swaps) - in this case we won’t see the end investors’ name.
For example a broker / banker may be squaring off a swap for an institutional investor in the US , but at the same time may be offering a swap for an investor in the UK.
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Okay you mean only brokers or middlemans name appear in front of deal detail
Yes
To give you bit more color - if a US investor enters into an Equity Swap agreement with broker “X”
Then the US investor pays cash to broker “X” and then “X” will buy the shares on his book and create a synthetic instrument (derivative) on that inventory. Then whatever the returns from that stock will be passed on by “X” to the US investor.
In the process “X” gets various fees.
At the exchange level, other investors will only see “X” as the buyer.
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These are intraday arbitrage trades between two exchanges. bought and sold at the difference of a few paise. There are such dedicated traders who do only such trades and nothing else.
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