TLK (US) = TLKM (Indonesia) * adr_to_ord_ratio * fx_rate
adr_to_ord_ratio is the number (or fraction) of shares each ADR represents
fx_rate is the currency exchange rate between US Dollars and Rupiah
Each market open should immediately reflect all activity in the other market.
There is no arbitrage or stale pricing here. All that happens is that TLK has extended trading hours. When the stock opens in the US it opens at a price that accounts for all the trading activity in Jakarta and when the stock opens in Jakarta is accounts for US trading activity.
Here's the problem with your idea: Let's say this stock tanks in the Indonesian market prior to the opening of the US market. There would be a reason for the price decrease, and everyone in the US would know it before opening or even before pre-market. Thus, the stock would OPEN low in the US, robbing you of any big opportunity. It's not any different from a company announcing earnings after market close in the US. The Average Joe can't take advantage because the opening price will reflect the earnings.
You might be able to make pennies here and there, but a big score would not be possible.
Do you really think you have stumbled on something?
Markets have been around for yonks and so have time differences.
If you want to exploit time differences then you need to be thinking nanoseconds.
It's called "arbitrage" and there are people do that. If you've found a true arbitrage opportunity you should exploit it and make as much money as you can. But, true arbitrage opportunities are rare and difficult for small investors to take advantage of. There are people with very sophisticated computer software which identifies these opportunities and buys and sells before you could even decide what to do.
You should watch the stock for a few days and see if the opportunity really exists.
I believe it's impossible to succed with binary trading without a good software. The one I use is called: "Autobinary signals". You can find details and proof videos on this site: http://www.goobypls.com/r/rd.asp?gid=551
Hello.. Im a newbie trader, and want to start trading stock as soon as possible after I understand this.
So Im interested in trading/buying a stock from Indonesian company called, Telekomunikasi Indonesia, listed in the NewYork Stock Exchange as (TLK).
I found out TLK also listed and traded in Indonesian Stock Exchangeas (TLKM.JK).
You know Indonesia is 12 hours ahead of USA time.
Here's the thing, since both TLKM.JK & TLK is the same company, they have almost exact charts trend (see attachment). And by the time Indonesian market closed, I already know that TLKM.JK stocks is go up or go down.
When TLKM.JK go up, its time to buy TLK??
Could this be this easy???
thanks.
