Price difference between NSE and BSE

If i compare price of a particular stock the price in NSE is different from price in BSE. Why is it so? Is it because of volume?


Mainly because of liquidity I suppose.


Usually differences are pretty small, and as Karthik has said it is just got to do with the liquidity (volume) I guess. But arbitrageurs will ensure that this difference will always remain pretty tight.

One of those concepts that will eventually become popular is Smart Order Routing (SOR), what this would do is, when you place a buy order you would choose only the stock name and the order automatically will go buy the stock from the exchange where the price is lesser, similarly when you sell it will be sold where the prices are higher, both of which will benefit the client trading.


No it is not present in Zerodha as of now.

But if as per my knowledge,if one buys in Nse then it should get squared off in Nse only as same with BSE.

Naturally the BSE and NSE are different exchanges.

The people trading on BSE are responsible for its price, trend and change in price.

Similarly in NSE.

But what really happens, people try to watch out for this price difference and according increase or decrease the bid/ask as per the other exchange, so that both the prices in BSE and NSE look similar.

If there is a huge difference forming between BSE and NSE price, arbitrageurs jump in and exploit the opportunity and bring the price again to a narrow range. Nowadays this arbitrage is done by automatic trading and hence you can rarely spot any huge differences.

is this available in zerodha today?
what if it is squaring on intraday, how will this handle it?

not available presently

Is this really possible?

If yes, are there any plan for supporting buy from nse and sell into bse in one transaction in kite?