arbitrage

[ahr-bi-trahzh for 1, 3; ahr-bi-trij for 2]

SEE MORE SYNONYMS FOR arbitrage ON THESAURUS.COM

noun

Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.

Archaic. arbitration.

verb (used without object), ar·bi·traged, ar·bi·trag·ing.

Finance. to engage in arbitrage.

Origin of arbitrage

1470–80; < Middle French, equivalent to arbitr(er) to arbitrate, regulate (< Latin arbitrārī; see arbitrate) + -age -age

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019

Examples from the Web for arbitrage

Contemporary Examples of arbitrage

In essence, the trading represented an arbitrage of the speed of light itself.
Some Traders Got ‘No Taper’ Decisions News Early
September 24, 2013
Our top two cities reflect the importance of this arbitrage opportunity.
Hot U.S. Cities That Offer Both Jobs and Culture Are Mostly Southern and Modest Sized
Joel Kotkin, Wendell Cox
July 30, 2013
Earlier this year, Richard Gere received plenty of kudos for his shady CEO in Arbitrage.
In Hollywood, Where Are the Best Actress Oscar Nominees?
Ramin Setoodeh
November 12, 2012
In financial markets, arbitrage is all about trading that minimizes risk and maximizes returns.
In ‘Arbitrage,’ Richard Gere Shows How the Price Is Right
Daniel Gross
September 13, 2012
Channeling his best Madoff—with a dash of Paulson and Falcone—Richard Gere plays a sneaky financier in ‘Arbitrage.’
In ‘Arbitrage,’ Richard Gere Shows How the Price Is Right
Daniel Gross
September 13, 2012

Historical Examples of arbitrage

In ordinary times those engaged in arbitrage operate with a very small margin of profit.
Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 4
Various
Arbitrage operations are for these reasons resorted to frequently by one country in supplying the requirements of another.
Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 4
Various
Arbitrage operations with distant countries such as India are large and mainly profitable.
Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 4
Various
They feed off market failures, market imbalances, arbitrage opportunities, shortages and inefficiencies.
After the Rain
Sam Vaknin

British Dictionary definitions for arbitrage

arbitrage

noun

finance

the purchase of currencies, securities, or commodities in one market for immediate resale in others in order to profit from unequal prices
(as modifier)arbitrage operations

Derived Formsarbitrageur (ˌɑːbɪtræˈʒɜː), noun

Word Origin for arbitrage

C15: from French, from arbitrer to arbitrate

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Word Origin and History for arbitrage

"exercise of the function of an arbitrator," late 15c., from Old French arbitrage "arbitration, judgment," from arbitrer "to arbitrate, judge," from Late Latin arbitrari, from Latin arbiter (see arbiter).