Shunting. London Stock Exchange term for transactions of a certain kind between the provincial
exchanges and London. If a Liverpool broker knows from the telegrams that he receives from his
London agent that he can sell Erie shares at 40 in London, and finds a seller in Liverpool at 39
7-8, he buys, and telegraphs to London to resell at 40. Shunting has to be conducted smartly or
the margin of profit may be gone before the telegrams have got through. It is the same as
arbitrage, but it is applied, as a rule, to inland operations as opposed to transactions between
London and New York or the Continent.
exchanges and London. If a Liverpool broker knows from the telegrams that he receives from his
London agent that he can sell Erie shares at 40 in London, and finds a seller in Liverpool at 39
7-8, he buys, and telegraphs to London to resell at 40. Shunting has to be conducted smartly or
the margin of profit may be gone before the telegrams have got through. It is the same as
arbitrage, but it is applied, as a rule, to inland operations as opposed to transactions between
London and New York or the Continent.
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