Ratio trading between two stocks that share an interest. You...

Ratio trading between two stocks that share an interest.

You sell EDE to offset you purchase of TAS shares. To work out your ratio you sell EDE at 0.36, you buy TAS at 0.275 there is a ratio of 1 : 1.31 (0.36/.275)

You now wait for the ratio to drop to sell the TAS shares to offset the purchase of EDE shares. If the ratio of 1.2 can be achieved (EDE 0.36 TAS 0.27) you can sell TAS buy EDE and end up with more EDE's than you had before without laying out another cent and also make a tax loss to reduce your taxable income (if applicable)

A small example can be found here > https://hotcopper.com.au/posts/22776500/